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CRYPTEC by POINT PLACE, LTD.
CRYPTEC and its operator, POINT PLACE, LTD. are NOT REGISTERED as a corporation or partnership with the Commission and have NO SECONDARY LICENSE to solicit, accept or take investments/placements from the public.

Date Posted: 7 April 2020

CRYPTEC

CRYPTEC

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Based on the information gathered by the Commission,the entity operating under the nameCRYPTECby POINT PLACE, LTD. in the Commonwealth of Dominica isengaged in investment-taking activitiesin the Philippineswhich is NOT AUTHORIZED by the Commission.CRYPTECis a non-licensed offshore crypto-currency broker which started in September 2019using the domain “http://cryptec.io.”As posted online, CRYPTECoffers a number of account typesor compensation packageswhich grants access to itsuniqueweb-based trading platform. To wit:Basically, CRYPTECoffers Fifty to One Hundred Fifty Percent (50-150%) Trading Bonus or income which is more than enough considering the volatility of the cryptocurrencies. It also includesleverages of 1:10up to 1:40depending on the chosen package which apparently helpsin increasing the investors’ trading success ratesandpotential return investments.
Hence, it must be emphasized that theTrading bonussystemisa favorite tool used by scammersbecause it prevents the investors fromwithdrawingtheirinvestmentsuntil they fulfill certain conditions such as theconstantminimum trade volume requirementand payment ofcorrespondingwithdrawal feesimposed byCRYPTECwhich are not usually enforced by legitimate brokers.CRYPTECalso uses the Leverage systemas an investment strategyby retaining a portion of the investors’ monies as securities and capitalize therefrom by using it forother business and/or ventures.As an additional tactic, CRYPTEC’s account managers will frequently and persistently conversewith theinvestorsonline in order to continually solicit bigger investments in exchange for higher returns.Accordingly, the scheme of CRYPTECinvolvesthe offering and sale of securities, in the form of investment contracts, to the publicbecauseitsinvestors need not exert any effort other than to invest or place moniesin the said entityin order to derive income.Therefore, thesaidoffer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the publicin accordance with Section 8 of the Securities Regulation Code (SRC).However, CRYPTECand its operator, POINT PLACE, LTD.are NOT REGISTEREDas a corporation or partnershipwith the Commissionand have NO SECONDARY LICENSEto 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 Securities Regulation Code (SRC).Also, the names CRYPTECand POINT PLACE, LTD.DO NOT APPEARamong the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas (BSP) in accordance with theGUIDELINES FOR VIRTUAL CURRENCY EXCHANGES (BSP CIRCULAR NO. 944)which requires all entities engaged in Virtual Currencies in the Philippinesto obtain a Certificate of Registration to operate as remittance and transfer company pursuant to the BSP rules and regulations.Consequently, the public is advised NOT TO INVEST or STOP INVESTING in any scheme offered by CRYPTECand POINT PLACE, LTD.or anyentities engaged in digital asset trading which promises ridiculous rates of return with little or no risks or show any other indications or characteristics of a Ponzi Scheme.The public must be mindful that such unregulatedentitiesare completely unaccountable for the waythey handle their businesses, and often, theseentities tend to disappear after quite some time to the prejudice of their investors. Thus, the public is encouraged to make conscious effort before making or placing their investmentsin any investment scheme offered by said entities especially during thesedifficult times.
Everyone is reminded that aside from the strict penalties imposedby the Commissionfor violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces, the Bayanihan to Heal as One Act(Republic Act No. 11469) also punishes those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.In addition, those who act as salesmen, brokers, dealers or agents ofsuch unauthorized entitiesin selling or convincing people to invest in theirinvestment scheme offeredincluding solicitations and recruitment through the internet may likewise be criminally prosecutedand penalized with a maximum fine of Five Million pesos(P5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Sections 28 and73 of the SRC. Further, those who invite or recruit others to join or invest in suchventure or offer investment contracts or securities to the public may incurcriminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court inthe case of Securities and Exchange Commissionvs. Oudine Santos(G.R. No. 195542, 19 March2014).The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.Should you have any information regarding any investmentsolicitation activity by any individualor group of individuals representing CRYPTECand POINT PLACE, LTD., pleasesend your report to the EIPD at epd@sec.gov.ph.For the guidance of the public. Pasay City, 06April2020