The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on MY PROFIT ROBOT (MPR), warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to not to invest or stop investing in any investment scheme offered by the said entity, its representatives or any entities engaged in schemes which promises ridiculous rates of return with little or no risks.
In support of this view, Coins.ph does not endorse or is affiliated in any way with such activities or products. Moreover, we have a zero tolerance policy on fraudulent activities and potentially scamming practices. In a separate article, we have enumerated tips on how you can avoid investment schemes and other online scams. We urge our customers to be extra diligent with their funds and to act within our User Agreement.
Based on information gathered by the Commission, MY PROFIT ROBOT (MPR) is engaged in UNAUTHORIZED investment-taking activities in the Philippines.
MPR claims that it is a unique trading robot that automatically trades your crypto currencies 24/7 at some exchanges using BXTCoins and PROPERTY ARBITRAGE as their trading platforms. It further claims that it is involved in the buying and selling of crypto currencies over several markets in order to make a profit from small to massive price differences across different markets.
As posted online, MPR claims that it is a profitable robot having profitable gains with an average daily profit of 1% per day or 365% per annum. To earn, you will need to purchase their MPR for Two Hundred Dollars (US$ 200.00) or its equivalent in Philippine Currency for a 6 month license, then you will have to make a deposit of bitcoin in your BXT wallet, after which they will do the trade for you.
To illustrate, your initial investment of Five Thousand Pesos (Php 5,000.00) will yield a profit of One Thousand Seven Hundred Thirty Nine Pesos (Php 1,739.00) in Thirty (30) days or a daily profit of 1% to as much as Twenty Thousand Twenty Two Pesos (Php 20,022.00) in Six (6) months. To wit:
MPR proudly claims that it is the most trusted and reliable robot to automate your arbitrage trading since its software can execute transactions way faster, calculate fees and price slippage and monitor lots of different pairs at the same time. MPR is constantly looking for price differences between exchanges in order to find a profitable situation and executes it immediately in order for their investors to gain profit.
In addition, their investors through their REFERRAL PROGRAM may also earn under the SHARE MY PROFIT ROBOT and receive up to Thirty Five Percent (35%) commission on sales.
Accordingly, the schemes presented by MPR involves the offering and sale of securities in the form of investment contracts to the public because it entices them to invest their monies on BXTCoins and Property Arbitrage and whether the BXTCoins be treated as a cryptocurrency irrespective of its unique characteristics, the SEC ADVISORY on Initial Coin Offerings and Virtual Currency posted 08 January 2018 specified that some virtual currencies, based on the facts and circumstances surrounding their issuance, follow the nature of a security as defined by Section 3.1 of the Securities Regulation Code (SRC).
Hence, Section 8 of the same Code requires that the said offer and sale of such securities must be duly registered with the Commission and the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the public.
However, per records of the Commission, MY PROFIT ROBOT is NOT REGISTERED as a corporation or partnership and has NO SECONDARY LICENSE 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).
Likewise, the name MY PROFIT ROBOT DOES NOT APPEAR 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) which requires all entities engaged in Virtual Currencies in the Philippines to obtain a Certificate of Registration to operate as remittance and transfer company pursuant to the BSP rules and regulations.
Thus, the public is advised NOT TO INVEST or STOP INVESTING in any scheme offered by any entities operating under MY PROFIT ROBOT or such other entities engaged in similar activities or initial coin offerings and digital asset trading which are not compliant with the BSP and the Commission.
The public must be wary that any promise of ridiculous rates of return with little or no risks is an indication of a Ponzi Scheme where monies from new investors are used in paying fake “profits” to earlier investors. Also, any promise that defies the normal financial logic is surely unreliable and sketchy.
It must be clear that entities engaged in such activities likely tend to disappear shortly to the prejudice of their stakeholders.
Consequently, the Commission encourages the public to be prudent in making or placing their monies on these entities especially during this pandemic.
Violators are warned that aside from the strict penalties imposed by the Commission for 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 of such 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 (Php 5,000,000.00) or a penalty of Twenty-One (21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC.
Further, 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 SEC vs. 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 correspondingly assessed.
Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing any entities operating under MY PROFIT ROBOT, please send your report to the EIPD at email@example.com.
For the guidance of the public.
Pasay City, 21 April 2020.