SEC Issues Advisory Against USDT-Centered Scheme of Decentra
The Securities and Exchange Commission (SEC) issued an advisory against Decentra, stating that it is offering unregistered securities to the public without the necessary authority or license issued by the Commission.
In a statement, the Commission emphasized that Decentra is offering its services through an initial membership fee of 99.95 USDT, with a monthly or yearly payment of $34.95 USDT or $349.95, respectively.
Decentra offers a variety of investment schemes, such as: Staking Program, which promises its investors up to 120% profit; Referral Plan, such as direct referral, indirect, dual referral, dual team bonus; Renovation Bonus, where a member that will be a direct sponsor could earn 4% to 6% of the money collected from its members, for the rest of his/her life; and the Dubai Promo, that promises a VIP treatment and an all-expenses-paid trip to Dubai, this can be availed if a member will recruit 10 people with an investment of $1,000 each.
The entity also offers seven services on its online platform, namely: Decentra Live, a broadcast platform for live events; Moon Converter, a crypto and fiat converter; Hikyault, a real-time portfolio tracker; Decentra Realty, where members can buy real assets using crypto; Ovusky, where members can book exclusive flights, hotels, and resorts with up to 65% off; Decentra University, that features John C. Maxwell and provides information on Leadership, Personal Growth, Business, Technology, Blockchain, Bitcoin, Metaverse, Cryptocurrencies, Defi, Staking, NFTs, and many more (not yet operational); and Private Members Club, which offers rewards to members.
It also gives ranks to its members, depending on how many USDTs a member has invested in the entity.
According to the Commission, Decentra claims that a member can recruit as many as he/she can and receive 50,000 USD “not from his pocket but from the hard work of recruiting other people, and earn even without doing anything” that can be withdrawn every Tuesday and Thursday.
“The public is hereby informed that DECENTRA is NOT registered with the Commission as a corporation, partnership or One Person corporation and is not authorized to solicit investments from the public, not having secured prior registration and/or license to solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC),” it stressed.
The SEC also warned the salesmen, brokers, dealers, and agents involved in the investment scheme offered by the entity including doing solicitations or recruitment through the internet may likewise be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Php5,000,000.00 or a maximum penalty of 21 years imprisonment or both pursuant to Section 73 of the SRC.
“In view thereof, the public is hereby advised to exercise self-restraint from investing their hard earned money in such high-yield, high-risk investment scheme and to take the necessary precaution in dealing with individuals representing the above-named entity and NOT TO INVEST or STOP INVESTING in said entity,” the Commission concluded.
Recently, the SEC has flagged down different entities that offered investment schemes online, through an application, or even in crypto. Check out more SEC Advisories here.
This article is published on BitPinas: SEC Issues Advisory Against USDT-Centered Scheme of Decentra
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