PH SEC Warns INNOV8WEALTH GLOBAL for Unauthorized Crypto Trading

The Securities and Exchange Commission (SEC) of the Philippines has recently issued a stern advisory against the firm INNOV8WEALTH GLOBAL, bringing to light that the firm has no authorization to offer crypto trading services or any investment solicitations to the Philippine public.

According to various reports and data gathered INNOV8WEALTH GLOBAL is allegedly involved in a range of activities, which include trading of cryptocurrency, color games, betting, and even using AI-prediction bots. This revelation has alarmed many who might be considering or are already involved with their offerings.

Their online platform showcases various investment plans. Prospective investors can choose from options like the fast start, leadership program, bronze, and platinum plans. These investment tiers range from Php 100.00 to a whopping Php 500,000.00. What's more enticing or perhaps alarming, depending on one's perspective, is the promise of weekly interest rates. Depending on the initial amount invested, these rates can be anywhere from 10.88% to 28.56%.

For those looking to invest, registration is available through the INNOV8WEALTH GLOBAL website, and payments can be processed through several banking options including Gcash, Unionbank, Komobank, Seabank, and CIMB Bank.

However, what's alarming is the underlying mechanism of their operation. The SEC points out that the way INNOV8WEALTH GLOBAL functions, it exhibits a clear “investment contract.” This means there's an expectation of deriving profits primarily from the efforts of others, a red flag by many standards.

By mandate, under the Securities Regulation Code (SRC), any offering or sale of such securities needs to be properly registered with the Commission. Furthermore, the involved entity must possess the necessary licenses to sell such securities to the public.

Adding to their list of infringements, the Financial Products and Services Consumer Protection Act (FCPA) outlines that investment fraud, including deceptive investment solicitations like Ponzi schemes, is strictly prohibited. A Ponzi scheme is when returns are paid to earlier investors using the capital of newer investors, rather than from profit earned. This scheme usually benefits those at the top, leaving those at the bottom at significant risk, especially if new investors stop joining.

After checking their records, the SEC found that INNOV8WEALTH GLOBAL is not even registered as a corporation. This means they lack the required licenses to solicit or accept investments from the public. Their operation resonates with the classic characteristics of a “Ponzi Scheme”, making it both fraudulent and unsustainable.

As a result of these findings, the public is strongly advised against investing in any scheme offered by INNOV8WEALTH GLOBAL. Those who promote, sell, or are involved in any recruitment activities for the firm, especially online, might face significant legal consequences, which include hefty fines or even imprisonment.

With the rising attractiveness of cryptocurrencies and online investments, prospective investors must exercise care, be educated, and ensure they are dealing with legitimate businesses. Always remember that if anything seems to be too good to be true, it most often is.

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