With the growth of cryptoindustry all kinds of hackers and criminals are starting to appear in it who are ready to appropriate money from unsuspecting investors.
Philippine authorities have arrested 31 employees of a company called Roses 4 U. An investigation found that the group was engaged in illegal attraction of online investments. Law enforcement officers who worked together with the Anti-Money Laundering Council and the local Securities and Exchange Commission (SEC) had ‘search warrants’ at the company’s offices in Pasay City and Cavite.
According to the SEC, the group engaged in attracting online investment in commodities and foreign currency. They also traded stocks, indices, bitcoins,and other cryptocurrencies through an online portal by attracting funds from foreigners. Roses 4 U agents informed foreign investors that their accounts were active although they were fictitious.
What violations did the SEC of the Philippines see
Section 26 of the Philippines Securities Regulatory Code (SRC) states that any schemes, tricks and concealment of material facts with the aim of taking possession of other people’s property or money are illegal.
In addition, the SRC also prohibits engaging in any actions or transactions that involve deceiving others.
Although Roses 4 U was registered as a corporation with the SEC it did not have the right to offer securities that, in this case, were also not registered with the Commission.Six employees of the office in Cavite were detained during the operation, when authorities confiscated evidence in the form of SIM-cards, computers and various documents. In the office of Pasay City 25 people were arrested and many gadgets and physical evidence were also taken which were used for the investment scam. The commission also made warning statements to the public so that citizens avoid such investment schemes and refrain from investing in any funds without the consent of the SEC, which should assess the legitimacy of the investment.
The incident in the Philippines represents only one of many other cases in which fraudsters portray legitimate brands to deceive the public and investors.