Have you invested already in the so-called Ploutos Coin? The Securities and Exchange Commission (SEC) through its Enforcement and Investor Protection Department has just released an advisory to the public to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Freedom Traders Club or its representatives. The said club which was founded by Mark Freeman has been promoting Ploutos Coin and just recently held the “The Ploutos Coin Grand Launching” at Limketkai Center.
In its advisory posted in its website, the Commission stated that FREEDOM TRADERS CLUB is not registered as a corporation or partnership and is not authorized to solicit investments from the public as the above-mentioned entity did not secure prior registration and/or license to solicit investment from the Commission as prescribed under Section 8 of the Securities Regulation Code.
The advisory further stated that “the 8 January 2018 ADVISORY ON INITIAL COIN OFFERINGS stating that “some of these new cryptocurrencies or digital coins, 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.”
In its investigation, SEC ruled that “the issuance of PLOUTOS COIN is considered as an investment contract under Section 3.1(b) of the RA 8799, otherwise known as the Securities Regulation Code (SRC).”
Accordingly, “those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in the investment scheme being offered by these cryptocurrency mining companies including solicitations and recruitment through the internet may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code 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 Section 73 of the SRC.”
Further, “those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).”
With these findings, SEC “urges anyone who has knowledge or information about any business transaction involving these securities or investment opportunities to report such activity so that appropriate actions could be taken through the Enforcement and Investor Protection Department at (02)818-6337 or (02)818-6047 or email us at firstname.lastname@example.org.”
Read the full advisory below.
Download the full advisory HERE.
Several government agencies have also shared the said advisory.