Friday, April 19, 2024

BSP, SEC warn public against firm offering ‘cloud mining machines’

The Bangko Sentral ng Pilipinas (BSP) has urged the public to be wary of a company called SK Pools Mining Corporation and its representatives for suspicious business practice.

In a press statement, the central bank said the company using the BSP name and logo on its website, social media accounts, and promotional materials.

The BSP asked the public to be discerning of the company’s claim that its “products, services, and assets are licensed, authorized, guaranteed, verified, certified, or confirmed by the BSP.”

“Their alleged business activity, ‘Currency Computing Mining Machines,’ is not within the purview of the BSP,” the central added.

The statement comes after the Securities and Exchange Commission issued last January 30 an advisory against the SK Pools Mining Corporation after receiving numerous reports and information that it is enticing the public through social media specifically on Facebook, to invest their money in the company.

According to the SEC, a prospective investor must sign up through the link provided and buy the “cloud-mining machine” from P700 to P75,000.00 and earn P70 to P1,960 a day.

But the SEC said the company is using a fake certificate of incorporation to make it appear that it is legitimate.

“Further, the scheme employed by SK Pools Mining Corporation has the characteristics of a ‘Ponzi 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,” it said.

“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme’ which is fraudulent and unsustainable, is not a registrable security,” the agency added.

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