Philippines SEC Warns Public Against Unauthorized Skyline Crypto Trading

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Sujha Sundararajan

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Sujha Sundararajan

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Last updated: 

June 20, 2024

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The Philippines Securities and Exchange Commission (SEC), the nation’s markets watchdog, has issued an advisory on Wednesday, warning the public against Skyline Crypto and Dry Goods Trading.

The advisory informed public that individuals claiming to represent Skyline Crypto Trading are unauthorized to solicit investments from citizens.

Per the Philippines’ regulator, the impersonators are offering investment opportunities online through Facebook Messenger group chats ranging from Php 1,000.00 to Php 1,000,000.00 ($17 to $17,000).

In addition to that, they promise a return of 35% of their investment in a short span of 15 days.

“The entity offers a “Lock-In Program” promising smartphones and various motor vehicles as “rewards” for their investors.”

The regulator’s database reveals that the entity is “not registered” and doesn’t hold a license to sell securities.

“It operates without the necessary license to solicit, accept, or take investments from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC).”

Possible Ponzi Scheme: Philippines SEC

The Philippines SEC indicates Skyline Crypto as a Ponzi scheme, which is an investment scam that creates an illusion of profits by initially paying investors.

“the public is advised ‘not to invest’ or ‘stop investing’ in any investment scheme being offered by Skyline Crypto and Dry Goods Trading as well as any other entities having the same or similar schemes.”

Further, those who are involved in the scheme under the entity name will face criminal liabilities for violating the Financial Products and Services Consumer Protection Act (FCPA). The perpetrators would be penalized with a maximum fine of Php 5,000,000 ($85000 approx) or imprisonment of 21 years or both, the warning said.

Crypto scams are proliferating in the Philippines, causing financial harm to investors, particularly those who are new to the technology.

Last year, the Philippines SEC collaborated with US counterpart to address the escalating issue of crypto scams. The collaboration highlighted the severity of a growing problem in terms of crypto-related fraud.

Additionally, the anti-cybercrime group of the Philippine National Police cautioned citizens on possible risks involved in cryptocurrency gaming schemes. This include ‘play-to-earn’ gaming model used by Axie Infinity, a metaverse game created on the Ethereum blockchain.