Politics

SEC warns about trading service firm Cryptogix

1 Mins read

THE Securities and Exchange Commission (SEC) has warned the public against investing in Cryptogix, a trading service provider that is not registered with the regulator to solicit investments.

In an advisory on Monday, the regulator said that the company operates as another “Sophia Francisco” entity, which was a subject of an advisory in September.

Cryptogix has been offering investment options to the public through Facebook and its website, the regulator said.

Referring to the company’s post in its Facebook group, the SEC said the entity is soliciting investments starting from P590 with 100% passive earnings in 90 days.

Cryptogix is also said to award a 5% referral fee to investors who will be able to invite new investors. Investors are also encouraged to register an account with Binance, a cryptocurrency exchange.

“Sophia Francisco issues joint venture agreement contracts through the official Facebook group to assure investors that they will be able to claim their earnings after the said 90-day lock-in period,” the regulator said.

According to the SEC, the described transaction is a form of selling investment contracts, which must secure a license or registration with the commission.

“The elements of an investment contract are all present as there is an investment of money into a common enterprise known as [Cryptogix], with the expectation of 100% returns,” it added.

The SEC said Cryptogix is not registered as a corporation or even as a partnership and therefore is not authorized to solicit investments.

“Hence, the public is advised not to invest or stop investing in any investment scheme being offered by any individual, or group of persons, allegedly for or on behalf of Cryptogix,” it added. — Justine Irish D. Tabile