SEC Facebook

ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT
SEC ADVISORY
Based on
reports and
information gathered by the Commission
,
the
entity
operating under the name
C
RYPTOPAYZ
by a certain
WESLEY
“
BILLION DOLLAR
”
VIRGIN
along with his supposed partner
SEYI ADELEKE
who
both appear
to b
e
flaunting
synthetic or fraudulent personalities
is
soliciting investments in the
Philippines
WITHOUT
THE NECESSARY LICENSE AND/OR AUTHORITY
from
the
Commission
.
Purportedly
,
CRYPTOPAYZ
is offering
a
unique
system
that
vaguely
let
its
user
s
turn any computer or phone that has access to the internet into a “
crypto
extraction machine
”
which can gather
free cryptocurrencies
without even dwelling into
mining
and/or trading
for an introductory price of just USD $19.00.
However,
to further
utilize its system
in order
to earn
lucrative
passive
returns
,
CRYPTOPAYZ
is also offering a number of packages
for a fee ranging from USD
$2
7.00 to $97.00
with corresponding
benefits, bonuses and earnings
that
seem
to be
“
too good to be true
”
considering the
apparent
absurdity of its scheme
coupled with its
promise of little or no risk
which are indications of a possible
“
Ponzi Scheme
.
”
.
As
follows:
Despite
being a probable
scam, since what is being offered by
CRYPTOPAYZ
are securities,
Section 8 of the S
ecurities
R
egulation
C
ode
requires that all offers and
sales of securities must be duly registered with the Commission
and that
the
concerned entity
and/or its agents
must
have
the
appropriate registration and/or
license to
offer and/or
sell such securities to the public
.
However, based on our records,
CRYPTOPAYZ
is
NOT
REGISTERED
with
the Commission
and is
NOT
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
SRC
in the Philippines
.
Our records also show
ed
that
CRYPTOPAYZ
does not have any
b
rokers,
account managers,
agents,
and/or representative that
have appropriate registration
and/or license to
offer and/or
sell
such
securities to the public
.
Considering the above,
the
public is advised
NOT TO INVEST
or
STOP
INVESTING
i
n
CRYPTOPAYZ
and in all other
entities promoting
or applying
the same
or similar scheme.
Constantly
, the public
is cautioned
that any offer or promise of ridiculous rate
s
of
return
with little or no risk similar to what
CRYPTOPAYZ
is offering
is an indication
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 companies’ profits
similar to
those already flagged by the Commission as
scams
.
Those engaged
in such operation tend to close or to shut down
operations once
they cannot gather enough investments from new investors to fund their schemes
.
The Commission is continually
reminding the public
that
the offering and sale
of
securities in the form of inv
estment contracts 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 in this business or scheme
.
Thus, everyone is warned that
strict penalties are imposed for v
iolations of
the
Securities Regulation Code, the Revised Corporation Code
of the
Philippines
, and such other rules and regu
lation enforced by the SEC.
Those who act as salesmen, brokers, deal
ers 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.
Equally, those who invite or recruit others to join or invest in such venture or
offer investment contracts or sec
urities 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 name
s of all those involved will
be reported
to the Bureau of Internal
Revenue (BIR)
as well
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 individuals representi
ng
CRYPTOPAYZ
, please send
your report to the EIPD at
epd@sec.gov.ph
.
For the guidance of the public.
P
asay City, 13
January 2022