The Philippines securities regulator has issued a public warning against a block reward cloud mining company that it claims is a pyramid scheme. Known as Mining City, it promises returns of up to $92 daily, paid out in Bitcoin Vault tokens. The Philippines Securities and Exchange Commission warned the public against investing in Mining City, claiming that it is not registered to offer its services in the country. Cryptocurrency-related scams have increased around the world this year amid the ongoing pandemic.
“Mining City is not registered with the SEC and operates without a license.”
The financial regulator stated in a press release that the Mining City is not registered with the Commission and operates without the necessary license or authority to solicit, accept or take investments from the public nor to issue investment contracts and other forms of securities. The mining company is also not registered to offer its services under the Guidelines for Virtual Currency Exchanges issued by the Philippines’ central bank, the SEC said. These guidelines require all entities engaged in digital currency activities to obtain a Certificate of Registration.
The SEC alleges the company could be a scam.
The Securities Exchange Commission further noted that moreover, the said scheme employed by Mining City clearly shows an indication of a possible Ponzi Scheme where monies from new investors are used in paying ‘fake profits’ to prior investors. Mining City is a cloud mining company that reportedly pools together funds from its investors and channels it towards block reward mining. It offers different plans, with the most basic starting at $300 for 3 TH/s and the Platinum plan costing an investor $12,600 for 138 TH/s. Crypto scams around the world have increased significantly this year amid the ongoing pandemic.