The Philippine SEC warns of the Ponzi program “Cloud Mining” from Bitcoin Vault

The Philippine SEC has issued an official warning on Mining City, the “cloud mining” company of Bitcoin (BTC)and advises the public to stay away from the program and others who like it. Despite official disapproval, the price of a related cryptocurrency is rising.

The warning describes the company as an unlicensed entity in the country and says it does not “work according to virtual currency exchange guidelines,” stating that:

“The above-mentioned system used by Mining City clearly shows a hint of a possible Ponzi scheme in which money from new investors is used to pay ‘false profits’ to those who invested first.”

The announcement also identified Gregory Rogowski, CEO of Mining City, Anthony Aguilar, team leader and Facebook page administrator Jhon Rey Gray as key people for the program.That will also be reported to the Internal Revenue Office for investigation into your tax assessments.

The Philippine SEC warns of the Ponzi program “Cloud Mining” from Bitcoin Vault
The Philippine SEC warns of the Ponzi program “Cloud Mining” from Bitcoin Vault

The program offers cloud mining packages in the form of three-year contracts that rent hashing power to investors for $ 300 to $ 12,600, and offers daily returns of up to $ 92 per day.. Mining City is partnering with MineBest, the inventor of the Bitcoin Vault (BTCV) scam, and investors receive their profits in the form of BTCV tokens.

The regulator urged the public “not to invest or stop investing in the plans offered by Mining City or companies involved in smart contracts, cryptocurrencies or digital asset exchanges that are not registered on the Commission.”“adding that promoters could face fines of more than $ 100,000 or prison terms of up to 21 years.

In the two weeks leading up to this warning, the price of BTCV fell 76% from $ 425 on August 23 to $ 100 on September 10.. It has since risen to $ 163, suggesting the warning may not be effective in deterring public interest in the system. The Mining City website states that the program will continue to work even if its website is closed for any reason, Indicates that Due to its decentralized nature, it is immune to government intervention.

The Philippine Securities and Exchange Commission had previously recognized the Ethereum gas consumer “Forsage” as a Ponzi program in July.However, in August it was stronger than ever with an expanded user base of 390,000 users and daily revenue of more than $ 3 million. According to DappStats, Forsage currently has more than 1,900 active users per day on Ethereum (ETH) and 800 active users on Tron (TRX).

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