The Philippine Securities and Exchange Commission has issued an official warning about the Bitcoin mining company (BTC) advising the public to steer clear of the scheme and other similar schemes. Despite official condemnation, the price of the corresponding cryptocurrency is going up.

The warning describes the company as an unlicensed entity in the country, saying it does not operate “in accordance with virtual currency exchange regulations,” and states:

“The above chart used by Mining City clearly shows an indication of a potential Ponzi scheme where the new investor’s money is used to pay out ‘false profits’ to those who invest first.”
The notice also lists Mining City CEO Gregory Rogowski, team leader Anthony Aguilar, and Facebook page chief John Ray Gray as the main employees involved in the scheme – all of whom will also be referred to the IRS for investigation of their tax assessment.

The scheme offers cloud mining packages in the form of three-year contracts in which hashpower is leased out to investors for between $ 300 and $ 12,600, and aims to generate daily returns of up to $ 92 per day. Mining City is working in partnership with MineBest, the creator of the Bitcoin storage scam, with investors making a profit in the form of BTCV tokens.

“Not to invest or stop investing in plans offered by Mining City or organizations involved in smart contracts, cryptocurrencies, or digital asset exchanges not registered in commission,” the regulator told the public, adding that the promoters could be fined. More than $ 100,000 or up to 21 years in prison.

Two weeks before this warning, the price of BTCV fell 76% from $ 425 on August 23 to $ 100 on September 10. The price has since risen to $ 163, indicating that the warning may not have been effective in curbing the public interest. In the schematic diagram. The Mining City website states that the program will continue to operate even if the site is closed for some reason – which means that it is immune to government interference due to its decentralized nature.

The Philippine Securities Commission had described the infamous Ethereum gas player “Forsage” as a Ponzi scheme in July. However, in August it was stronger than ever, with an expanded user base of 390,000 users and a daily turnover of over $ 3 million. According to DappStats, Forsage currently has more than 1900 active users on Ethereum (ETH) and 800 active users on Tron (TRX).

Source: CoinTelegraph

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