The Securities and Exchange Commission (SEC) of the Philippines has recently warned the public about a well-known bitcoin scam known as Bitcoin Revolution. Its advisory stated that its solicitation of investments in the Philippines is not authorized.
Bitcoin Revolution’s False Promises
Bitcoin Revolution was introduced to Filipinos through advertisements from seemingly reputable crypto websites. These advertisements claim that Bitcoin Revolution is a revolutionary trading app that is being endorsed as one of Holly Willoughby Bitcoin systems. However, all statements from these advertisements are not true.
Moreover, Bitcoin Revolution was advertised as effective “automated trading software that has been designed to trade the bitcoin and cryptocurrency markets.” It also promises its Filipino investors that they can earn up to $1,000 per day even if they only have at least $250 initial investment. Its website also mentioned how Bitcoin Revolution can easily make anyone get successful bitcoin trades around 85% to 95% of the time.
Another red flag is its claim that it can make its users millionaires in 61 days. Other features it claims to have are backstaging feature, live auto trading and demo trading.
To make it appear that it is a legal business in the Philippines, it allows its users to pay through popular debit and credit cards. It also offers live chat support in a bid to show that it as a company that can provide great customer service.
Unauthorized Selling of Securities
On March 30, 2020, the SEC revealed that Bitcoin Revolution is offering unregistered securities in the form of investment contracts.
Section 8 of the Securities Regulation Code (SRC) requires all offers and sales of securities to be registered and approved first by the SEC. The concerned company or its agents should also have an appropriate license to sell such securities.
The SEC also gave a warning:
“Those who act as salesmen, brokers, dealers or agents of Bitcoin Revolution in selling or convincing people to invest in the investment scheme being offered by these entities including solicitations and recruitment through the internet may likewise be prosecuted and held criminally liable under Section 28 of the SRC 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.”
It also reminded Filipino investors to be extra careful when investing in the highly volatile digital asset market.
Aside from confirming that Bitcoin Revolution is not licensed to sell securities, the SEC also revealed that Bitcoin Revolution is not registered as a corporation in the Philippines, doesn’t have secondary license to get investments from Filipinos and was not given a virtual currency exchange by the Bangko Sentral ng Pilipinas (BSP).