Philippines SEC put out a warning against the Mining City project
The Philippines SEC recently issued a warning against a mining contract scheme people are discussing and making the rounds on the web called Mining City.
Philippines SEC put out a warning against the operation and the alleged masterminds behind the Mining City project
It is known that Mining City is a cloud mining operation that pays users in a token called Bitcoin Vault or BTCV. The project announced they owned an offsite datacenter filled with mining rigs, and the project sells cloud mining contracts to investors. Like other models, Mining City specializes in selling cloud mining contracts in packages with a term of many years, and depending on the purchased hash package can go up to more than $ 12.00/contract and, of course, not lack of promises to pay investors $ 100 per day paid in BTCV.
The people behind the project are CEO Gregory Rogowski, Philippines group leader Anthony Aguilar, and Jhon Rey Gray. BTCV’s value is listed on the coin market cap aggregator, Coingecko, and the token touched an all-time high of $ 489 on August 1, 2020. Mining City’s token is down -85.27% since then and now trades for $ 72 per BTCV. At press time, 1 BTCV is priced at $ 71.4, a slight increase over the past 24 hours.
Although always recognizing itself as an official investment model, many studies are showing that Mining City is, in fact, just Ponzi and shows signs of fraud. On September 10, 2020, the Securities and Exchange Commission of the Philippines (SEC) released a warning about Mining City activities.
On September 10, 2020, the Philippines Securities and Exchange Commission (SEC) published a warning about the Ponzi’s operations:
“Mining City project is a pyramid scheme. The so-called smart contracts or Mining City Contracts partake of the nature of securities in the form of investment contracts under the regulatory jurisdiction of the Commission. The aforementioned scheme used by Mining City clearly shows an indication of a possible Ponzi scheme in which new investor money is used to pay ‘bogus profits’ to those who invested first. ”
The SEC also emphasized that investors should not invest in Mining City or stop investing in the project. The SEC reminds investors that they will not protect them when the Ponzi operation collapses because it is not covered by prudential and market conduct requirements.
Despite the Philippine SEC condemnation, the terms “Bitcoin Vault” or “Bitcoin Vault price” are groundbreaking searches on Google Trends. Furthermore, tech giants like Twitter, Facebook, and Youtube allow this Ponzi to thrive, as thousands of posts and videos can be found on these platforms.
According to the representative of Mining City, the project wholeheartedly rejected the financial management agency’s statements. In a specific article, the project leaders accuse the Philippines SEC listing seems to have come due to misinformation posted by individuals in the Philippines.
However, the Philippines SEC warning said that the regulator could also prosecute criminal liability for a YouTube channel called “Crypto Knight Miner.” Furthermore, if found guilty, the Mining City operators could face a fine of up to 5 million pesos (more than $ 100k) and 21 years in prison.
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