SEC Warns Public Against Staking Scam YDYS Trading

In an advisory published on April 21, the Securities and Exchange Commission (SEC) warned the public to be cautious when transacting with individuals soliciting investments for and on behalf of YDYS Trading. The Commission emphasized that the platform does not have the license and authority to solicit investments from the public.

Moreover, the SEC added that investors must be wary of Mar Albert Pondang Hidalgo, the head of said trading platform.

According to the Commission, YDYS Trading Opc is offering investments ranging from ₱300 up to ₱50,000. As posted online, YDYS Trading is enticing investors that they can earn 35% for a 10-day period; 35% for the next ten (10) days; 35% for the following ten (10) days; and 145% earnings for the next fifteen (15) days, “for a total of accumulated earnings of 250% in just 45 days.”

In addition, the platform is using cryptocurrency as their trading product and interested individuals may contact any agent and choose which package they may opt to avail. Also, investors can buy packages by depositing their payment to the assigned payment channel and they may monitor their income and request payout through their profile on this website.

The SEC added that YDYS Trading also offers Staking package/s that can also earn investors “product points” to redeem the following gadget and car incentives.

“YDYS TRADING OPC’ is associated with the product “Buah Merah”. This product is only available when you choose the Orange Staking package equivalent to ₱5,000 and Gold Staking package equivalent to ₱50,000. Upon further investigation, YDYS TRADING OPC appears to release a new product named “DreamSlim Cleansing and Slimming Coffee” soon,” the SEC added.

Consequently, the Commission noted that YDYS Trading investors also earn through the following: Direct Referral Bonus, where an upline recruits another investor and will earn 50% of the package availed by the direct downline. Next is Upgrade Bonus, which can also be earned when the downline wishes to increase the current value of its package—the upline earns 50% from the upgraded package. Lastly, Team Rewards Commission which can be earned when the downline is able to recruit more investors. For every investor, the upline will earn 1% commission from the downline’s earnings. 

“As the above described schemes involve the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities should be duly registered and that the concerned corporation and/or its agents have the appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC,” the Commission noted.

Further, the commission stressed that their records show that YDYS TRADING OPC is registered with the Commission on 01 March 2022 as a One Person Corporation. However, as indicated in its Certificate of Incorporation, it clearly states that it is not authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the SRC. 

“Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such for YDYS TRADING OPC in selling or convincing people to invest in the investment scheme being offered by said entity including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million pesos (₱5,000,000.00) or penalty of Twenty One (21) years of imprisonment or both pursuant to Section 73 of the SRC,” the SEC noted.

The Commission reminded the public not to invest and to stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of YDYS TRADING OPC and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it. 

With YDYS Trading, among other entities, taking advantage of the growing popularity of cryptocurrency the SEC, as they always remind the public, emphasized that investors must be cautious in dealing with digital and cryptocurrency investments, (Read more: SEC Advises Public to be Cautious on Crypto Investments)

Since the beginning of the year, the Commision already flagged and warned the investing public against seven crypto trading and play-to-earn entities; MetaProfit, Autotrade International, Crypto Asset, CryptoStakers, CryptoPayz, Future Farming, and Outrace Play-to-earn.

This article is published on BitPinas: SEC Warns Public Against Staking Scam YDYS Trading

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