The SEC warns the public against investing in unregistered entities Glass Coin and Vaultrade, identifying their schemes as potentially fraudulent Ponzi operations.
The Securities and Exchange Commission (SEC) has issued a stern warning to the public, advising against investing in Glass Coin and Vaultrade, two entities currently operating without the necessary authorization to solicit investments. In two separate advisories published on its official website, the SEC highlighted the risks associated with these companies, which have been promoting high-return investment schemes that may pose significant financial dangers to investors.
According to the SEC, Glass Coin claims to be a trust fund company specializing in crypto asset management. The entity allegedly encourages potential investors to participate in their “smart contracts,” promising substantial earnings with minimal investment. Specifically, Glass Coin advertises a minimum investment of ₱600, with a promised daily earning of ₱66, resulting in a total revenue of ₱1,980 after 30 days. The maximum investment, set at ₱200,000, is purported to yield a daily return of ₱6,666 and a total revenue of ₱199,980 over the same period.
In addition to these promises, Glass Coin reportedly offers incentives for recruitment, including a maximum bonus of ₱3,650 for inviting others to join and a daily cash reward of ₱10,000 for following the entity’s Telegram channel.
Similarly, the SEC has flagged Vaultrade for enticing the public with promises of high returns on investments. The entity is said to offer two investment plans, with potential earnings of 60% and 140% within a period of 10 to 200 days. Additionally, Vaultrade allegedly offers a 5% referral bonus and an additional 5% reward whenever new investors reinvest their earnings.
The SEC has raised serious concerns about the legitimacy of these schemes, noting that both Glass Coin and Vaultrade exhibit characteristics of a Ponzi scheme. In such schemes, money from new investors is used to pay fictitious profits to earlier investors, creating an illusion of profitability. These schemes are typically unsustainable and can collapse quickly, especially when new investments dry up, leaving subsequent investors with significant losses.
“The offering and selling of securities in the form of investment contracts using the Ponzi Scheme, which is fraudulent and unsustainable, is not a registrable security. The commission will not issue a license to sell securities to the public to persons or entities engaged in this business or scheme,” the SEC stated.
The regulatory body further warned that individuals who act as salesmen, brokers, dealers, agents, or enablers for Glass Coin and Vaultrade could face severe legal consequences under the Securities Regulation Code. Penalties may include a maximum fine of ₱5 million, imprisonment of up to 21 years, or both.
The SEC’s advisories serve as a crucial reminder to the public to exercise caution when considering investment opportunities, particularly those that promise unusually high returns with minimal risk. Investors are urged to thoroughly research any investment entity and ensure it is registered with the SEC before committing their funds.
As the SEC continues to monitor and crack down on fraudulent investment schemes, the public is encouraged to report any suspicious investment activities to the commission, thereby aiding in the protection of potential investors from financial harm.
