Bitcoin (BTC) and Ponzi, two terms associated in business scams since cryptocurrency became famous. This time, the case takes place in the Philippines where the equivalent of the local SEC has addressed a warning to Mining City and to the promoters of the controversial system. They would risk a sentence of up to 21 years in prison. In addition to the Ponzi scheme which is questioned, the structure is accused of operating on Philippine territory without the required authorizations. Explanations.
A system guaranteeing daily returns of up to $ 92
The local SEC warning states that: ” The system used by Mining City clearly shows an indication of a possible ponzi scheme in which money from new investors is used to pay fictitious profits to those who invested first “. A pretty serious charge that comes on top of the fact that the company is not registered and does not operate according to the guidelines for virtual currency exchanges. The matter becomes even more worrying when we know that Mining City works in partnership with MineBest. These are indeed sadly famous for creating the Bitcoin Vault scam.
Concerning the system in question, it proposes mining packages in the form of three-year contracts where the hash power is leased to investors. Rental costs range from $ 300 to $ 12,600. To encourage strong participation, the system claims to provide daily returns of up to $ 92. Three members of the company have been clearly identified as key people involved in the scheme. These include Gregory Rogowski the CEO of Mining City, Anthony Aguilar the team leader and the page administrator Facebook in the person of Jhon Rey. They will also be investigated for their tax assessments after being reported to the Office of Internal Revenue.
Mining City continues to operate despite the risk of fines and imprisonment
It is also specified that these promoters could be criminally prosecuted with fines over $ 100,000 or sentences of up to 21 years in prison. In the wake of this warning, the supervisory and regulatory body expressly recommended that the public stay away from the offending company. The instructions thus given are: ” not to invest or to stop investing in the plans offered by Mining City or by entities that engage in smart contracts, cryptocurrencies or exchanges of digital assets that are not registered with the commission “. Despite this, Mining City indicated that the program would continue to function even if its website were to be closed.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
The links with MineBest and the fact that it is not officially registered make Mining City an unreliable company, as does its investment system. The country’s SEC action is expected to get many Filipinos away from what looks like a scam. Bitcoin is no more prone to scams than FIATs because of its transparent construction. Nevertheless, his young age still makes him an easy target.