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ALGOSCALP / ALGOSCALP AUTO TRADING / ALGOSCALP TRADING
ALGOSCALP / ALGOSCALP AUTO TRADING / ALGOSCALP TRADING is NOT REGISTERED with the Commission and is NOT AUTHORIZED to solicit, accept or take investments/placements from the public

Date Posted: 10 March 2022

ALGOSCALP

ALGOSCALP

SEC Facebook

Based on information gathered by the Commission,
the
en
tity
operating under
the name
ALGOSCALP
,
is
soliciting investments in the Philippines
WITHOUT THE NECESSARY LICENSE
AND/OR AUTHORITY
from the Commission
.
ALGOSCALP
,
claims that it is a fully automated trading system, that the provider will place buy and
sell orders for the investor, all
owing the investor to trade the financial markets without
needing to lift a finger. Further, it claims that it is a crypto

currency of the Algorand
Blockchain that aims to be simultaneously scalable, secure and decentralized.
ALGOSCALP
uses “scalping”, a trading style that specializes in profiting off of small price changes
and making fast profit from reselling.
ALGOSCALP
,
is
enticing the public to invest in the said entity with a minimum amount of
Two hundred
Pesos (Php2
00.00) with a promise of a
One to Thirteen Percent (1

13%) daily profit
range for 22 days.
An investor can also earn thru
direct referral of “active trade
.” In
every “active trade”, an investor earns a
twelve percent (12%) commission
. The c
laims
of
ALGOSCALP
appears to be “
to good to be true

with
indications of a possible
Ponzi Scheme
where
returns to early
investors are likely to be paid out from the investments of new investors
and not out of the compan
y

s
profits
similar to those already flagged by the
Commission as
scams
.
Basically,
ALGOSCALP
,
claims that it gathers money from the public to fund its supposed project
through
Initial Coin Offering
(
ICO
) on the promise of profits.
The
SEC
Advisory on
Initial Coin Offerings
and
Virtual Currency
posted
08
January 2018
provides that an
ICO
is the first sale and issuance of a new virtual
currency to the public usually for the purpose of raising capital for start

up companies
or funding independent projects.
Depending on the facts and circumstances surrounding their issuance, some
of thes
e new virtual currencies follow the nature of a security as defined by Section
3.1 of the Securities Regulation Code (
SRC
)
similar to what
is being offered by
ALGOSCALP
,
whereby
a person invests money in a commo
n enterprise and is led to expect profits primarily
from the efforts of others.
Since what is being offered by
ALGOSCALP
,
are securities,
Section 8 of the SRC requires that all offers
and sales of said securities must be duly registered with the Commission
and that
ALGOSCALP
,
and/or its
agents
must
have appropriate registration and/or license to
o
ffer and/or
sell such
securities to the public
.
However, based on the records of the Commission,
ALGOSCALP
,
is
NOT
REGISTERED
with the Commission
and is
NOT
AUTHORIZED
to solicit, accept or take
investments/pla
cements from the public nor to issue investment contracts and other
forms of securities defined under Section 3 of the
SRC
in the Philippines
.
Our database also shows that
ALGOSCALP
,
has no
brokers, account managers,
agents,
and/or
representative that
have appropriate registration and/or license to
offer or
sell
such
securities to the public
.
ALGOSCALP
,
is
NEITHER
REGISTERED
a
s a Virtual Asset Service Provider (VASP)
with the Bangko
Sentral ng Pilipinas (BSP)
and
DOES NOT HAVE A CORRESPONDING
CERTIFICATE OF AUTHORITY
as a Money Service Business
(MSB)
required under
the Guidelines for Virtual Asset Service Providers
(BSP Circula
r No. 1108, Series of
2021)
.
Likewise, it
s
name
DOES NOT APPEAR
among those
list
ed as
registered
MSBs as of January 2021 with the Anti

Money Laundering Council
under the Anti

Money Laundering Act
.
Hence, it must be emphasized that such offering and sale
of
securities in
the
form of investment contract
using the

Ponzi Scheme

is fraudulent and unsustainable
and
is
NOT a registrable security
.
The Commission will NOT ISSUE a License to
Sell Securities to the Public
to persons or entities that are engaged i
n this
business or scheme
.
The public is reminded that
Unregistered and/or unauthorized platforms like the
ALGOSCALP
,
are risky
as well and should be avoided accordingly.
Therefore, the
public is advised
NOT TO INVEST
or
STOP INVESTING
in
ALGOSCALP
, and/or in
any other scheme being offered
by
it
no matter how
enticing, trendy, or catchy its
slogan, proposition, and/or scheme
is.
T
he Commission warns all unscrupulous individuals and/or entities that
strict
penalties are imposed for v
iolations of the
Securities Regulation Code, the
Revised Corporation Code, and such other rules and regu
lation enforced by the
SEC.
Those who act as sa
lesmen, brokers, dealers or agents of unauthorized entities
in selling or convincing people to invest in their investment scheme offered including
solicitations and recruitment through the internet
, may likewise be criminally
prosecuted and penalized with
a
maximum fine of Five Million pesos
(P5,000,000.00) or a penalty of Twenty

one (21) years of imprisonment or both
pursuant to Sections 28 and 73 of the SRC.
Similarly, those who invite or recruit others to join or invest in such venture or
offer investm
ent contracts or securities to the public may incur criminally liability, or
otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the
case of
SEC vs. Oudine Santos
(G.R. No. 195542, 19 March 2014).
The names of all those involv
ed will also be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penalties and/or taxes be assessed
correspondingly.
Should you have any information regarding any investment solicitation activity
by any individual or group of indiv
iduals representing
ALGOSCALP
, please send your report to the EIPD at
epd@sec.gov.ph
.
For the guidance of the public.
Pasay City, 10 March 2022.