SEC flags virtual currency traders

The public should guard against individuals and groups engaged in unauthorized investment-taking activities disguised as cryptocurrency trading and franchising, corporate regulator Securities and Exchange Commission (SEC) warned yesterday.

In separate advisories issued on 9 February, the SEC advised caution on dealing with Jams Mart, Solmax Global Limited and Igniter 100, as well as BitAccelerate.

The warning came amid the surge of the price of bitcoin, a virtual currency, to a record price of near $50,000 in global trade.

All three groups have not secured the necessary licenses to offer securities for sale within the Philippines, as required under Republic Act 8799, or the Securities Regulation Code.

The SEC warned all individuals or entities involved in the unauthorized investment-taking activities of the strict penalties provided under the Securities Regulation

Code, and other laws, rules and regulations enforced by the Commission.

Under the Securities Regulation Code, those who act as salesmen, brokers, dealers or agents of unlicensed investments firm with a maximum fine of P5 million or imprisonment of up to 21 years or both.

Similarly, those who invite or recruit others to join or invest in such ventures or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly, as held by the Supreme Court in the case of SEC vs Oudine Santos.

Jams Mart, which is headed by a certain Niño Luis Jamili, is not registered with the SEC either as a corporation or as a partnership.

The group has been offering investments to the public through its franchise investment program, where investors are promised up to 300 percent or returns within one year.

Solmax Global, Igniter 100

Solmax Global and Igniter 100, meanwhile, have been enticing the public to invest in its initial coin offering (ICO) through its Filipino Independent Marketing Partners.

Supposedly based in London, Solmax and Igniter 100 are operated by Florian Krueger, Serge Meulenbelt, Abdul Rehman Sandhu, Steven Lubka, Thelma Dhlovu, Aarron Bates and Asim Mirza.

The groups’ ICO supposedly involves their cryptocurrency called “Equity Token” or “i100” valued at 0.38 pounds per token/share as of November 2020, with expectations that the price would drastically increase once listed in the open market this year.