SEC issues new warning against investing in Mining City

THE Securities and Exchange Commission (SEC) is warning the public that it has not given authority to a group named Mining City to solicit investments or offer securities in the Philippines.

In an advisory posted on its website, the corporate regulator reiterated its previous notice that there are no records with the commission for Mining City, Prophetek Mining City, OPC, or any variation of its name.

The repeat advisory came after reports that certain individuals have claimed on social media that Mining City has completed the SEC company registration process.

“This is apparently an effort by individuals or group of persons to mislead the public using such false representations to create a semblance of legality to the operations of Mining City for the purpose of enticing the public to invest in its scheme, which was subject of an advisory issued by the commission on Sept. 10,” the SEC said.

It noted Mining City remains unauthorized to solicit, offer, accept, or take investments from the public, nor issue investment contracts and other forms of securities.

“The public is again advised not to invest or stop investing in any scheme offered by Mining City or such other entities engaged in offering securities or smart contracts, cryptocurrencies and digital asset trading that are not registered with the commission and the Bangko Sentral ng Pilipinas,” it said.

In an Oct. 29 statement sent to BusinessWorld on Friday, which was also posted on its social media platforms, Mining City said there is a “new company successfully registered in the Philippines,” which has “applied for a secondary license… to allow Mining City to carry on with its business activities.”

It added it talked with the SEC last week regarding the application for a license to sell securities, and the approval is expected within a week. The SEC was not able to verify this information to BusinessWorld.

“Getting a secondary license with the SEC is a complicated process which requires a lot of work; however, it is one that is incredibly important to us. All of this effort is just a piece of a much larger plan that will be released once we are ready, and all the formalities are done,” Mining City said.

It also said it is aware of third parties “wrongfully presenting false information and potentially contributing — whether intentionally or unintentionally — to preventing the success of us receiving this license and damaging our brand.”

“Nevertheless, we will continue being honest and transparent about our business along with our ongoing efforts to adhere to full compliance [with] requirements,” Mining City said.

Mining City was first named by the SEC in a Sept. 10 advisory, where it identified the group as an investment operator using cryptocurrency or bitcoin vault.

The regulator likened Mining City’s operations to a Ponzi scheme, such that it collects money from new investors to repay “fake profits” to old investors, which it said is “inherently fraudulent and unsustainable.” — Denise A. Valdez

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Article and Photo originally posted by Business World last November 2, 2020 12:04am.