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Based on information gathered by the Commission,theentityoperating under the names CUBEBIT 2.0,CUBEBIT, and CUBEBIT PHILIPPINES (CUBEBIT 2.0)utilizingmainly thedomain “www.cubebit.io”aside from other websitesissoliciting investments in the Philippines WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITYfrom the Commission.CUBEBIT 2.0appears to beoperatedbyits new CEO and Co-FounderKONSTANTIN JANKEtogether withformer CEOPAUL SCHWARTZ,Global AmbassadorROMEL GUMIRAN,Chief Global AdvisorDAVE BAGUYO,and Founding Members SHERMAN SAGER,ALLAN TAD-Y,JOE BEDORE,andJOJO TANamong others.Similar to the modus of other entities already flagged by the Commission as scams, CUBEBIT 2.0 claims to provide the most profitable and secured platform for users to grow digital assets and passive income online through its extensive ecosystem which includes the CUBE SHOP, CUBE ACADEMY, CPAY, I-PLAY,ADCUBE or its crowdfundingandreferral systemprogram,CUBEX online trading platform, CUBEBOTautomated cryptocurrency trading program, and the saleor Initial coin offering(ICO) of its CUBECOINtoken (CUB). As posted:
Basically, CUBEBIT PHILIPPINES ’sactual compensation plan and money-making scheme focuses primarily onits supposedtrading and crowdfundingprograms which offers memberships to its“LITE Account” for € 49.00 or almost Php 3,000.00per account,and its“ELITE Account”for € 299.00 or almost Php 17,500.00per account,with corresponding referral, binary, uni-level bonuses and leadership ranking incentivesas shown abovewhich seems to be “too good to be true.”
Asregard to trading, CUBEBIT 2.0’s minimum subscription fee is € 100.00 or at least Php 5,800.00 with a guaranteed daily profit ranging from 0.80% to 2.5% for 180 days or a total of 144% to 450% increase in revenueafter the said period withan additional incomeof 5% based on the amount ofeveryadded investmentmade by the user orsubscriptions placed bydirect referrals.Accordingly, the public is again warned of such possible “Ponzi Scheme”offering high-yieldinginvestments online.Please note thatthe Securities Regulation Code (SRC) requires that said offer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public.However, based on our records, CUBEBIT 2.0 isNOTREGISTEREDwith the Commission and isNOT AUTHORIZED to 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).CUBEBIT 2.0 is also NOT REGISTEREDeither as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding. CUBEBIT PHILIPPINES ’sCUBEXlikewiseoperateswithouttheproper registration nor have pending application for registration with the Commission relative toSection 32 of the SRC on the “Prohibition on Use of Unregistered Exchange.”To wit:Additionally, CUBEBIT 2.0isNOT INCLUDED among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas (BSP) in accordance with the GUIDELINES FOR VIRTUAL CURRENCY EXCHANGES (BSP CIRCULAR NO. 944).Hence, the public isadvisedNOT TO INVEST orSTOP INVESTING in any scheme offered by CUBEBIT 2.0 thatpromise ridiculous rates of return with little or no risk.As always, the public is encouragedtoconstantlycheck the Commission’swebsiteat “www.sec.gov.ph” and itsOfficial Facebook pageat“Securities and Exchange Commission Philippines(@PhilippineSEC)” forfurther announcements, information and/or guidancewith regard to investment.Thus, be an #INVESTigator.“#MagINVESTiga” and “#HuwagMagingBiktima.”
At any rate, the Commission assures the public that it will continuouslymonitorand oversee such entities and their activities in a way that it sees as proper in order to prevent the proliferation of their unauthorized and/or illegal operationsin the country.Consequently, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations ofthe Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation enforced by the Commission.Those who act as salesmen, brokers, dealers or agents ofsuch unauthorized entitieslike PAUL HERMOSA,ANDREW CASTILLO, ROWEL RAŇA and ELLANOR MACABALLUG in selling or convincing people to invest in theirinvestment scheme offeredincluding solicitations and recruitment through the internetmay likewise be criminally prosecutedand penalized with a maximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or bothpursuant to Sections 28 and73 ofthe SRC. In the same manner, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the publicmay incur criminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SECvs. Oudine Santos(G.R. No. 195542, 19 March 2014).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 assessedcorrespondingly.Apart therefrom, 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 actssuch as below:
It must be noted that the above laws are not aimed to hinder or pose significant threats or risksto businesses and cryptocurrency projects but are intended for the protection of both the registered entities and the investing public from any anomalies and/or irregularities which tend to result from any unlawful and/or unauthorized operations.Further, the public is informed that offering and saleof securities in the form of investment contracts using the “Ponzi Scheme”which is fraudulent and unsustainable, is NOT a registrable security. The Commission will not issue a License to Sell Securities to the Publicto persons or entities that are engaged in this business or scheme. A “Ponzi Scheme”is a scam that involves a scheme where monies from new investors are used in paying “fake profits” to prior investorsand is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors.Also, the issuance of a Certificate of Incorporation only grants entities juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC such as a License to Sell Securities to the Public.Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing CUBEBIT 2.0, please send your report to the EIPD at epd@sec.gov.ph.For the guidance of the public. Pasay City, 10December2020