The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on ETHMARKET LLC, 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.
The Commission has gathered information that individuals or groups of persons representing ETHMARKET LLC/ETHMARKET LLC PH. which is being operated through person or persons using the pseudonym “PRINCE TOH REEZ,” are enticing the public to invest in said entity.
Based on reports from the public and as posted on Facebook Messenger Group Chat (FB), the investment scheme of ETHMARKET LLC/ETHMARKET LLC PH. is to entice the public to invest in the said entity with a promise of earning a return of 20% daily or 100% (“double your money”) in a period of 10 days. The investor can invest a minimum amount of Three Hundred Ninety Nine Pesos (Php399.00) or up to Three Hundred Ninety Nine Thousand Pesos (Php399,000.00). An investor can also earn from direct referral ranging from 10% direct referral, 3% 2nd level and 2% on 3rd level.
Accordingly, the scheme of ETHMARKET LLC/ETH MARKET LLC PH. involves the offering and sale of securities, in the form of investment contracts, to the public.
Therefore, the said offer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the public in accordance with Section 8 of the Securities Regulation Code (SRC).
However, ETHMARKET LLC/ETHMARKET LLC PH. is NOT registered as a corporation or partnership with the Commission 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).
Seemingly, the name ETHMARKET LLC/ETHMARKET LLC PH. DOES NOT APPEAR among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas (BSP) as well in accordance with the GUIDELINES FOR VIRTUAL CURRENCY EXCHANGE (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.
In view thereof, the public is hereby advised to STOP INVESTING in the investment scheme being offered by ETHMARKET LLC/ETHMARKET LLC PH. and its representatives or any entities engaged in investment schemes which promises ridiculous rates of return with little or no risks or show any other indications or characteristics of a Ponzi Scheme.
Everyone is reminded 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 ETHMARKET LLC/ETHMARKET LLC PH. in selling or convincing people to invest in the investment scheme being offered by said entity 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 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 Securities and Exchange Commission 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 the operation of ETHMARKET LLC/ETHMARKET LLC PH. or any investment solicitation activity by any individual or group of individuals representing ETHMARKET LLC PH., please send your report to the Enforcement and Investor Protection Department at firstname.lastname@example.org
For the guidance of the public.
Pasay City, June 4, 2020