SEC Issues Advisory against CryptoPayz

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The Securities and Exchange Commission (SEC) released an advisory to the public to be cautious when transacting with individuals soliciting investments for and on behalf of investing platform CryptoPayz. The Commission stressed that the platform does not have the license and authority to solicit investments from the public.

The SEC warned the public to be wary of a certain Wesley “Billion Dollar” Virgin and his supposed partner Seyi Adeleke who both appear to be flaunting synthetic or fraudulent personalities while seeking investments for CryptoPayz.

“Purportedly, CRYPTOPAYZ is offering a unique system that vaguely let its users turn any computer or phone that has access to the internet into a “crypto extraction machine” which can gather free cryptocurrencies without even dwelling into mining and/or trading for an introductory price of just USD $19.00,” the Commission wrote.

Moreover, the SEC stated that the platform also offers a number of packages for a fee ranging from USD $27.00 to $97.00 with corresponding benefits, bonuses and earnings that seem to be“ too good to be true.”

The Commission emphasized that the “apparent absurdity of its scheme coupled with a promise of little or no risk” offers of CryptoPayz are indications of a possible Ponzi Scheme.

Considering that CryptoPayz offers securities, as per the Section 8 of the Securities Regulation Code (SRC)  which requires that all offers and sales of securities  must  be  duly  registered  with  the  Commission; the SEC also pointed out that the platform is not registered and not authorized to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the SRC.

“Our records also showed that CryptoPayz does not have any brokers, account managers, agents, and/or representatives that have appropriate registration and/or license to offer and/or sell such securities to the public,”  the Commission added.

Accordingly, the SEC advised the public not to invest or stop investing in CryptoPayz and in all other entities promoting or applying the same or similar scheme.

“Constantly, the public is cautioned that any offer or promise of ridiculous rates of return with little or no risk similar to what CryptoPayz is offering is an indication of a possible Ponzi Scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the companies’ profits similar to those already flagged by the Commission as scams,” the Commission added.

This month alone, the SEC already flagged more 3 entities that are also leveraging the emerging market of cryptocurrency and play-to-earn games.

The public were warned against transacting with individual or group of persons soliciting investments for and on behalf of crypto trading entities Crypto Asset and CryptoStakers. The SEC stressed that these are also not registered as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas (BSP) and does not have a corresponding Certificate of Authority as a Money Service Business. 

The Commission also issued an advisory against BCPay Financial Technology Inc (BCPAY Inc.) which is doing business under the name OUTRACE “Play to Earn” and is soliciting investments in the country without license and authority from the SEC. (Read more: SEC Issues Advisory Against “Outrace Play-to-earn”)

This article is published on BitPinas: SEC Issues Advisory against CryptoPayz

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[…] soliciting investments for and on behalf of crypto trading entities Crypto Asset, CryptoStakers, CryptoPayz and Outrace Play-to-earn. The SEC stressed that these entities do not have a corresponding […]

[…] soliciting investments for and on behalf of crypto trading entities Crypto Asset, CryptoStakers, CryptoPayz and Outrace Play-to-earn. The SEC stressed that these entities do not have a corresponding […]

Michael Mislos

A business ad graduate from the Pamantasan ng Lungsod ng Maynila, Mike is the website manager of Bitpinas.com. He is responsible for almost every content you see on the site, from topic/news selection to editing of articles. Mike believes correct information about blockchain and cryptocurrency can empower people to make accurate decisions about the industry, which, in turn, should deter bad actors from taking advantage of crypto & blockchain. [Telegram @mikemislos]