The Philippines SEC identified Mining City as a Ponzi scheme and warned promoters could face up to 21 years imprisonment
The SEC of the Philippines has issued an official warning about the “cloud mining” company Mining City. Even so, despite the official condemnation, the price of a cryptocurrency involved is on the rise.
The Philippines SEC identified Mining City as a Ponzi scheme
The warning describes Mining City as an unlicensed entity in the country and states that it does not operate the following guidelines for virtual currency exchanges.
The SEC said:
“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.”
At the same time, the SEC also warned that Mining City CEO Gregory Rogowski, team leader Anthony Aguilar and Facebook page administrator Jhon Rey Gray are the key personnel involved in the plan – all of these people will also be reported to the Internal Revenue Service for investigation of their tax assessments.
This plan offers cloud mining packages in the form of a three-year contract where hash power is leased to investors worth between $ 300 and $ 12,600 and is intended to provide daily returns up to 92 dollars per day. Mining City partners with MineBest, the creator of the Bitcoin Vault (BTCV) scam, with investors receiving their returns in the form of BTCV tokens.
The regulator told the public:
“Don’t invest or stop investing in plans offered by Mining City or by entities that engage in smart contracts, cryptocurrencies, or digital asset exchanges that are not registered with the commission. Promoters could be criminally prosecuted with fines over $100,000 or imprisonment of up to 21 years.”
In the two weeks leading up to this warning, the BTCV price plummeted 76% from $ 425 on August 23 to $ 100 on September 10. Since then, it has risen to $ 163, showing that Alerts may be ineffective in suppressing public interest in this plan. On the Mining City website, it claims the program will continue to run even if its website is closed for any reason – implying that it has not been tampered with by the government due to its decentralized nature.
The Philippines SEC previously flagged the infamous Ethereum gas miner “Forsage” like a Ponzi scheme in July; however, it was more vital than ever in August with its user base expanding to 390,000 users and daily revenue of more than 3 million dollars. Forsage currently has more than 1,900 daily active users on Ethereum and 800 active users on Tron.
Miguel Cuneta, the co-founder of Phillipine fintech Satoshi Citadel Industries — wrote:
“I received numerous inquiries from friends and family about Forsage and ‘investing’ in Ethereum just within the last month or so. People are posting screenshots of their wallets turning a small amount of money into a large amount of money in a short time.”
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