SEC tells public not to invest in BitdefiHub get-rich-quick scheme | Inquirer Business

SEC tells public not to invest in BitdefiHub get-rich-quick scheme

/ 02:37 PM October 24, 2022

The Securities and Exchange Commission (SEC) warned the public from investing in a new get-rich-quick scheme being perpetuated a company called BitdefiHub Advertising.

The SEC said in an advisory that BitdefiHub was soliciting investments from the public without securing the necessary licenses and permits.

The company’s promise of large returns of up to 20 percent per day also raises red flags, the corporate regulator warned.


“In view thereof, the public is advised not to invest or stop investing in any investment scheme being offered by BITDEFI and exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of BITDEFI,” the SEC’s Enforcement and Investor Protection Department, or EIPD, said in an advisory.


According to the SEC, BitdefiHub has been enticing the public to invest a minimum of P300 in exchange for 20 percent in earnings daily. This was based on advertisements that were circulated on the company’s Facebook page.

“Investors who park their money within a span of 10 days stand to double their profits through the Bitdefi platform,” the SEC added.

“For instance, investors who deposit P500 are promised earnings worth P100 per day and P1,000 after 10 days. An investment of P3 million will likewise yield P600,000 in a day, and could be doubled to P6 million after 10 days,” it explained.

The company also offers a referral bonus of 25 percent and a registration bonus of P50. Investments are coursed through fintech payment platform GCash.

The SEC said the scheme violates Section 8 of Republic Act No. 8799, or The Securities Regulation Code, which states that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

“Records show that BitdefiHub’s owner, Mark Guevarra Mercado, has been conferred a certificate of business name registration by the Department of Trade and Industry,” the SEC said.


“However, it is not registered as a corporation or partnership with the Commission. Accordingly, it cannot apply for the necessary license that would authorize it to solicit investments from the public,” it added.

The group is likewise not registered as a crowdfunding intermediary or funding portal, in accordance with SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.

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The EIPD further warned those who act as salesmen, brokers, dealers or agents or claim to act as such on behalf of BitdefiHub in selling or convincing people to invest may be prosecuted and held criminally liable under Section 28 of the SRC, and penalized with a maximum fine of P5 million or penalty of 21 years of imprisonment or both pursuant to Section 73 of the SRC.

TAGS: get-rich-quick schemes, SEC, warning

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