SEC warns public from Pluggle’s investment scheme
Plugging Inc. has been requiring its members to sign up to its website by purchasing an activation code amounting to P1,000 using bitcoins or through their legitimate members or leaders.
MANILA, Philippines — The Securities and Exchange Commission on Thursday warned the public from investing in Pluggle Inc., an advertising website that is not authorized to solicit investments.
Although Pluggle Inc. is registered to the commission, the SEC said that the company is not authorized to solicit from the public as it has yet to secure the necessary documents from the regulatory agency.
The SEC said that Pluggle Inc. has been requiring its members to sign up to its website by purchasing an activation code amounting to P1,000 using bitcoins or through their legitimate members or leaders.
The Commission also said that on its Facebook account, Pluggle Inc. promises a return of 30 percent to 100 percent in 12 days.
Pluggle Inc. claims that its members may supposedly earn various amounts in six different ways:
1. P100 upon registration
2. P100 every time a member logs in to his or her account
3. P60 per login of the person’s 1st level downlines and P40 per login of the individual’s 2nd level downlines
4. P100 for every person he or she sponsors into the system.
5. P400 for one pair in each level down to the 10th level of the binary structure;
6. P100 for every pair in the binary structure.
The SEC also warned that any salesman, brokers, dealers or agents claiming to be representing Pluggle Inc. may be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code.
The SEC also said that individuals who convince potential investors to the scheme can be penalized with a maximum fine of P5 million or penalty of 21 years imprisonment.
Furthermore, the regulatory body also warned that those who invite or recruit other people to join or invest in the scheme or offer contracts or securities to the public may also be held liable.
Meanwhile, the SEC said that Banko Sentral, under its Memorandum Circular No. 944, s. 2017, does not intend to endorse any virtual currency such as bitcoin as it is neither issued or guaranteed by a central bank nor backed up any commodity.
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