Users Remain Unpaid, CEO Deactivates FB as Spotipay Gets Flagged by SEC as Scam
The entity promises high returns through music streaming investments without proper authorization.
The SEC has issued a warning against Spotipay, an unregistered entity enticing the public to invest with promises of high returns through music streaming.
- Spotipay is reportedly led by a certain Fritz Mangalindan Sandiang-Abay.
- The advisory was issued last June 25, 2024— the firm and its CEO are all over social media for fraud reports.
What’s the Significance: The warning highlights the risks of investing in unregistered entities, emphasizing the need for public vigilance to avoid potential financial scams. [Read more: Amid SEC Advisory, Metamax Event in PH Cancelled, Wants Investors to Stop Posting on Social Media]
Spotipay Investment Plans:
- Investment plans: Php1,500 (Basic) and Php5,000 (Premium)
- Promised returns: 35% in 7 days or 250% in 45 days
- Referral income fee: 10% to 12.5%
How the scheme works: Investors register on the Spotipay website, select a subscription plan, and are asked to deposit money through various payment methods.
- The scheme promises profits simply by listening to music.
The latest:
- In a message shared to the BitPinas Telegram group, it appears investors of Spotipay are yet to receive their ROIs and warned other prospective investors to take caution:
- Upon checking on social media, there is also a private Facebook group, made on March 24, 2024, called “Victims of Spotipay Scam” with 1.4k members:
- As of writing, there are other Facebook posts cautioning against Spotipay and its CEO, whose Facebook account is already deactivated.
The SEC highlighted that Spotipay is not registered as a corporation or partnership.
- They also lack the necessary license or authority to solicit, accept, or take investments.
- Unregistered investment schemes are a growing concern for the SEC, with fraudsters exploiting various platforms to lure unsuspecting investors with promises of quick and substantial profits.
- High-return promises with minimal effort are classic signs of a potential Ponzi scheme, where returns are paid from new investors’ money rather than genuine profit.
The bottom line: The SEC is advising the public to avoid investing in Spotipay and similar unregistered entities. Always verify the legitimacy of investment opportunities with the proper authorities to safeguard finances.
Worth reading: Previously, the SEC, along with other fintech firms in the country, have warned about another unregistered entity METAMAX ASIAN INC./METAMAX, saying the company is not authorized to solicit investments running a Ponzi scheme.
This article is published on BitPinas: SEC Warns Public Vs Listen-To-Earn Spotipay
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