The Securities and Exchange Commission (SEC) warned the public against dealing with Empire X Capital and Astra Financial Service Group because they are not authorized to solicit investments.

The commission said it received reports that individuals or groups are enticing the public through social media platforms to invest in Empire X.

Based on the online materials posted by Empire X, it offers investment opportunities to the public with a minimum investment amount ranging from ₱300 to ₱5,000, depending on the selected plan.

The investment packages purportedly guarantee returns of 25 percent after six days and 70 percent after 18 days. In addition, investors are allegedly encouraged to participate in a referral program through which they may earn commissions amounting to seven percent, three percent, and two percent based on the investments made by referred individuals.

“The public is hereby informed that an ‘investment contract’ exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others. Such characteristics appear to be present in the scheme employed by Empire X Capital,” said the SEC.

As such, the Securities Regulation Code (SRC) requires that the offer and sale of securities be duly registered with the commission and that the concerned entity or its agents possess the necessary registration or license to offer and sell such securities to the public.

The SEC said its records show that Empire X is not registered with the commission as a corporation. It also warned that the scheme employed by Empire X bears the characteristics of a “Ponzi scheme,” where money from new investors is used to pay purported profits to earlier investors.

“The offering and selling of securities in the form of investment contracts through a Ponzi scheme, being fraudulent and unsustainable in nature, the commission does not issue a license to sell securities to the public to persons or entities engaged in such business or schemes,” said the SEC.

Meanwhile, the SEC warned the public against Astra and its representatives or any similar entities claiming to offer cryptocurrency trading investments with guaranteed profits, particularly those promising up to 2,000-percent profit in 30 minutes, “risk-free” or “guaranteed returns,” fast withdrawal of unusually high earnings, and investment schemes promoted through social media, messaging apps, or unverified websites.

“These claims are false, deceptive, and indicative of an investment scam. Legitimate financial and investment products, including cryptocurrency trading, do not guarantee fixed or extremely high returns in a very short period of time. Any promise of guaranteed profits is a major red flag,” said the SEC.

The SEC said that based on its database, Astra is also not registered as a corporation or partnership and operates without the necessary license or authority to solicit, accept, or take investments from the public or to issue investment contracts and other forms of securities defined under the SRC.

The commission added that the Financial Products and Services Consumer Protection Act (FCPA) prohibits investment fraud, which includes any deceptive solicitation of investments from the public, such as Ponzi schemes and other similar schemes involving the promise or offer of profits or returns sourced from investments or contributions made by investors themselves, as well as the offering or selling of investment schemes without the necessary license or permit from the SEC.