The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on CUBEBIT PHILIPPINES or CUBEBIT 2.0, 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, the entity operating under the names CUBEBIT 2.0,CUBEBIT, and CUBEBIT PHILIPPINES(CUBEBIT 2.0)utilizing mainly the domain “www.cubebit.io”aside from other websites is soliciting investments in the Philippines WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY from the Commission.
CUBEBIT 2.0 appears to be operated by its new CEO and Co-Founder KONSTANTIN JANKE together with former CEO PAUL SCHWARTZ ,Global Ambassador ROMEL GUMIRAN, Chief Global Advisor DAVE BAGUYO, and Founding Members SHERMAN SAGER, ALLAN TAD-Y,JOE BEDORE, and JOJO TAN among others.
Similar to the modus of other entities already flagged by the Commission as scams, CUBEBIT 2.0 claims to provide the most profitable and secured platform for users to grow digital assets and passive income online through its extensive ecosystem which includes the CUBE SHOP, CUBE ACADEMY, CPAY, I-PLAY,ADCUBE or its crowdfunding and referral system program, CUBEX online trading platform, CUBEBOT automated cryptocurrency trading program, and the sale or Initial coin offering(ICO) of its CUBECOIN token (CUB). As posted:
Basically, CUBEBIT 2.0’sactual compensation plan and money-making scheme focuses primarily on its supposed trading and crowdfunding programs which offers memberships to its “LITE Account” for € 49.00 or almost Php 3,000.00per account, and its “ELITE Account” for € 299.00 or almost Php 17,500.00per account, with corresponding referral, binary, uni-level bonuses and leadership ranking incentives as shown above which seems to be “too good to be true.”
As regard to trading, CUBEBIT 2.0’s minimum subscription fee is € 100.00 or at least Php 5,800.00 with a guaranteed daily profit ranging from 0.80% to 2.5% for 180 days or a total of 144% to 450% increase in revenue after the said period with an additional income of 5% based on the amount of every added investment made by the user or subscriptions placed by direct referrals.
Accordingly, the public is again warned of such possible “Ponzi Scheme” offering high-yielding investments online.
Please note that the Securities Regulation Code (SRC) requires that said offer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public.
However, based on our records, CUBEBIT 2.0 is NOTREGISTERED 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 Securities Regulation Code (SRC).
CUBEBIT 2.0 is also NOT REGISTERED either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.
CUBEBIT 2.0’s CUBEX likewise operates without the proper registration nor have pending application for registration with the Commission relative to Section 32 of the SRC on the “Prohibition on Use of Unregistered Exchange.” To wit:
Additionally, CUBEBIT 2.0 is NOT INCLUDED 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).
Hence, the public is advised NOT TO INVEST or STOP INVESTING in any scheme offered by CUBEBIT 2.0 that promise ridiculous rates of return with little or no risk.
As always, the public is encouraged to constantly check the Commission’s website at “www.sec.gov.ph” and its Official Facebook page at “Securities and Exchange Commission Philippines(@PhilippineSEC)” for further announcements, information and/or guidance with regard to investment. Thus, be an #INVESTigator.“#MagINVESTiga” and “#HuwagMagingBiktima.”
At any rate, the Commission assures the public that it will continuously monitor and oversee such entities and their activities in a way that it sees as proper in order to prevent the proliferation of their unauthorized and/or illegal operations in the country.
Consequently, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation enforced by the Commission.
Those who act as salesmen, brokers, dealers or agents of such unauthorized entities like PAUL HERMOSA,ANDREW CASTILLO, ROWEL RAŇA and ELLANOR MACABALLUG 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 and73 of the SRC.
In the same manner, 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 assessed correspondingly.
Apart therefrom, 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 such as below:
It must be noted that the above laws are not aimed to hinder or pose significant threats or risks to businesses and cryptocurrency projects but are intended for the protection of both the registered entities and the investing public from any anomalies and/or irregularities which tend to result from any unlawful and/or unauthorized operations.
Further, the public is informed that offering and sale of securities in the form of investment contracts using the “Ponzi Scheme” which is fraudulent and unsustainable, 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. A “Ponzi Scheme” is a scam that involves a scheme where monies from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors.
Also, the issuance of a Certificate of Incorporation only grants entities juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC such as a License to Sell Securities to the Public.
Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing CUBEBIT 2.0, please send your report to the EIPD at email@example.com.
For the guidance of the public.
Pasay City, 10December2020.