The SEC has issued an official warning about the “cloud mining” business mining Bitcoin ( BTC) Mining City, urging its audience to uninstall the device and those like it. The price of a specific cryptocurrency is on the rise, prompting official denouncements.
The alert describes the business as unlicensed and stated that it did not operate following virtual currency trading guidelines, saying:
The aforementioned Mining City scheme specifically indicates that fresh investment capital can be used to pay null gains for the investors who first invested.
The notice also has name of CEO Minging City, Gregory Rogowski, Team leader Anthony Aguilar, and Facebook admin Jhon Rey Gray, as primarily involved in this scheme — all of whom are also referred to the Interior Revenue Bureau for tax inquiry.
The device provides three-year cloud mining packages where hash power is leased to customers in the amount of $300 to $12.600, and is projected to provide up to $92 daily returns. Mining City deals with investors who earn their rewards in the form of BTCV talks in collaboration with MineBest.
It said, “never invest or quit investing in plans provided by Mining City or organisations involved in intelligent contracts, cryptocurrencies or non-profit digital asset exchanges,” adding that promoters could be charged legally for fines of $100 thousand or up to 21 years in jail.
The price of BTCV dropped 76 percent from 425 USD on August 23rd to 100 USD on September 10th in the two weeks previous to this admonition. Since then, it has hit 163 bucks, showing that the alarm has not successfully deterred the system. On the website of Mining City, the software will continue to operate even though its website is closed due to its decentralized existence — suggesting its immunity to government interference.
The SEC from the Philippines previously flagged Ethereum gas jets “Forsage” like a Ponzi scam in July, but its user base grew in August to 390,000 and its regular revenue of more than 3 million dollars. According to DappStats, Forsage today has over 1900 active Ethereum users (ETH) and 800 active Tron users (TRX).
The Philippines’ financial regulator has alerted cloud mining firms without registering with the SEC, encouraging this business model. Cloud mining practices include a pre-bought hazard contract from remote mining, and customers purchase contracts for life or a short period. Cloud mining operations The customers of cloud mining will benefit from the mining proceeds of the pool if the activity is successful and contracts can not even split or fail. The SEC describes that various national and international cloud miners have demanded the agreements for people living in the Philippines after an initial investigation.
These contracts agree to pay the investor daily or weekly mining revenue according to the regulator, and these unregistered companies also offer fees on each appointment that they report, based on this commercial procedure, under Rule 26.3.5 para. The SEC notes that 4. These sales are known as investment contracts from the 2015 Securities Regulatory Code. The findings demonstrate that certain assets are shares; the SEC describes the Howey Test.
“Since this scheme entails the public selling of securities, the SRC demands that these securities offered be licenced properly and that the company and/or its agents be given a valid licence and/or permit to publicly market the securities offered pursuant to Section 8 of the SRC,” underlines the Philippines SEC.