SEC Slaps P1 Million Fine on CryptoAsset Trading Following Scam Accusations

SEC Slaps P1 Million Fine on CryptoAsset Trading Following Scam Accusations

by February 8, 2024

The Securities and Exchange Commission (SEC) has recently enacted measures against CryptoAsset Trading OPC by revoking its certificate of incorporation and levying a fine. This step was taken in light of the firm’s engagement in unauthorised investment solicitations, which strayed from its legally registered purpose of trading goods.

Originally, CryptoAsset Trading OPC was sanctioned solely to engage in the purchase, sale, and distribution of various goods. However, subsequent investigations uncovered that the enterprise had ventured into the realm of offering investment securities to the public without securing the requisite permits and licences, thereby breaching its declared business aims as per its Articles of Incorporation.

Prompted by public complaints and ensuing probes, the SEC discovered that CryptoAsset was promoting investment opportunities with promises of substantial returns. This led to the issuance of a formal advisory on 2 February, marking the company’s activities as fraudulent and in violation of regulatory standards.

The involvement of Janus Alfonsus Alvez Tisalona, Edwin Lara Tisalona, and Jocelyn Lacandula Alvez with CryptoAsset’s unlicensed operations was noted. Despite prior warnings and legal actions, including a conviction against Tisalona for breaking securities and cybercrime laws, the company did not rectify its operations.

The company’s failure to respond to an SEC order seeking clarification on its activities further sealed its fate, leading to the revocation of its business license and a P1 million fine that must be paid within 15 days, underlining the importance of regulatory compliance and the SEC’s commitment to investor protection.


Featured image credit: Edited from Freepik