Based on information gathered by the Commission, the illegal investment solicitation activities of LEEFIRE/LEEFIRE LIMITED/LEEFIRE PH/LEEFIRE PHILIPPINES is apparently being continued with an identical scheme under the name, “SENGRE.” The Commission has earlier issued an Advisory against LEEFIRE/LEEFIRE LIMITED/LEEFIRE PH/LEEFIRE PHILIPPINES. SENGRE is offering investments to the public through the website: https://sengrec.com/. Signing up through a personal mobile number or email address will entitle investors to get a cash bonus of PHP 150 which can be used to buy corresponding level of goods. Consequently, by accomplishing a higher-level of task, users may earn more commission & rewards. Also, if the user is able to invite another friend, the user will get an additional earning of PHP 150 per friend. As posted online, SENGRE is offering investments to the public. By registering with a personal mobile number, an initial cash bonus of PHP 150 is given to be used to buy the lowest level of product referred to as “level 1”. For level 2, level 3, level 4, level 5, level 6, level 7, and level 8 are priced at PHP 600, PHP 2 000, PHP5 000, PHP 20 000, PHP 40 000, PHP 120 000 and PHP 360 000 respectively. Investors earn by completing “click farm task.” For every level, the investor should complete eighteen (18) orders per day to maximize earnings for each day. By clicking “Receive orders”, “Details of orders” will appear on the screen, indicating, among others, the expected income and withdrawable coin (SGC) earnings per order. Assuming that the value of one SGC (Sengre Coin) is PHP 1 and the user completes 18 orders per day of the level availed, earnings accumulate to approximately 33% to up to 60% on click farm task only. As mentioned in the website, SGC will be launched on mainstream exchanges before 30 August 2022. To withdraw SGC earnings, the investor must invite friends to top up any amount, unlocking the withdrawable SGC earnings, hence releasing SGC earnings to the investor’s account. Also, the investor receives additional earnings and SGC equivalent to 15% of the friend’s top up value. *Task earnings & SGC rewards only apply if the user is able to complete 18 orders per day. Furthermore, investors may also earn through “Team Commission.” Team Commission is earned by inviting more investors through a referral link. 1. First Level Friends refer to when the user is able to invite another investor and will earn a portion of recruited investor’s profit; 2. Second Level Friends refer to when First Level Friend is able to recruit another investor. The user will earn a portion of the Second Level Friend’s profit; and 3. Third Level Friends refer to when the Second Level Friend is able to seek an investor, the user will be able to earn a portion of profits earned. Team commission varies according to the current membership level availed of. Investors can advance to higher levels by topping up an amount needed to avail of the desired level. There are two ways to top up: 1. Gcash (minimum of PHP 500); and 2. Coin recharging – Investors may top up with USDT. SENGRE gives five percent (5%) free cash when choosing this option to recharge. Users withdraw earnings through Gcash or Coin withdrawal with a minimum of 10 USDT (Tether) with service fee of 18% of the withdrawal amount. Moreover, if the accumulated top up value of the First Level Friend reaches a minimum of PHP 3,000, the user may claim maximum additional earnings of approximately 60% up to 98% for premium products per day. TEAM COMMISSION Level First Level Friend Second Level Friend Third Level Friend 1 PHP 150 6% 3% 1% 2 PHP 600 7% 3% 1% 3 PHP 2 000 8% 4% 2% 4 PHP 5 000 9% 4% 2% 5 PHP 20 000 10% 5% 2% 6 PHP 40 000 11% 5% 2% 7 PHP 120 000 12% 6% 3% 8 PHP 360 000 13% 6% 3% As the above described schemes involved the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned corporation and/or its agents have the appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC. The records of the Commission show that SENGRE is not registered with the Commission either as a corporation or as a partnership. Further, it is NOT AUTHORIZED to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the SRC. Further, since SENGRE is also promising its investors to receive its native cryptocurrency “SENGRE COIN (SGC)” in an apparent Initial Coin Offering (ICO), it is apt to once again remind the public that in our SEC Advisory on Initial Coin Offerings and Virtual Currencies posted 08 January 2018, an ICO was defined as 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. Thus, depending on the facts and circumstances surrounding their issuance, some of these new virtual currencies follow the nature of a security as defined by Section 3.1 of the Securities Regulation Code (SRC) whereby a person invests money in a common enterprise and is led to expect profits primarily from the efforts of others. The same goes for the SENGRE COIN (SGC) where SENGRE seeks to use the money it gathered from the public to fund its purported project on the promise of profits. Hence, since what is being offered by SENGRE are securities, Section 8 of the SRC requires that all offers and sales of said securities must be duly registered with the Commission and SENGRE and/or its agents must have appropriate registration and/or license to offer and/or sell such securities to the public. SENGRE is NOT REGISTERED as 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 Circular No. 1108, Series of 2021). Further, SENGRE’s name DOES NOT APPEAR among those listed as registered MSBs as of January 2021 with the Anti-Money Laundering Council under the Anti-Money Laundering Act, as amended. Those who act as salesmen, brokers, dealers or agents or claim to act as such for SENGRE in selling or convincing people to invest in the investment scheme being offered by said entity including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and 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 Section 73 of the SRC. Also, those who invite or recruit others to join or invest in such venture or offer investment 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 Securities and Exchange Commission vs. Oudine Santos (G.R. No. 195542, 19 March 2014). 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 SENGRE and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it. Should you have any information on any recruitment or securities solicitation activities being undertaken by persons or group of persons claiming to represent SENGRE you may send your reports to the Enforcement and Investor Protection Department through email at email@example.com. For the guidance of the public. Pasay City, 05 May 2022.