The Securities and Exchange Commission (SEC) has warned the public against investing in Cubebit Philippines as its operations were flagged by the agency as a possible Ponzi scheme.
In its advisory, the SEC noted that the organization uses the name Cubeit 2.0, Cubeit and Cubeit Philippines and operates the website www.cubeit.io. The agency said the company is operating without a necessary license and appears to be running a scam.
The agency said Cubeit is operated by its new CEO and co-founder Konstantin Janke together with former CEO Paul Schwartz, global ambassador Romel Gumiran, chief global advisor Dave Baguyo, and founding members Sherman Sager, Allan Tad-Y, Joe Bedore and Jojo Tan, among others.
“Similar to the modus of other entities already flagged by the commission as scams, Cubebit 2.0 claims to provide the most profitable and secured platform for users to grow digital assets and passive income online through its extensive ecosystem which includes the Cube Shop, Cube Academy, Cpay, I-Play, Adcube or its crowdfunding and referral system program, Cubex online trading platform, Cubot automated cryptocurrency trading program, and the sale or initial coin offering of its Cubecoin token (CUB),” the agency said.
The group’s actual compensation plan and money-making scheme focuses primarily on its supposed trading and crowdfunding programs which offers memberships to its Lite Account for €49.00 or almost P3,000 per account, and its Elite Account for €299.00 or almost P17,500 per account, with corresponding referral, binary, uni-level bonuses and leadership ranking incentives, which the SEC said “seems to be too good to be true.”
Cubebit 2.0’s minimum subscription fee is €100.00 or at least P5,800 with a guaranteed daily profit ranging from 0.80 percent to 2.5 percent for 180 days, or a total of 144 percent to 450 percent increase in revenue after the said period, with an additional income of 5 percent based on the amount of every added investment made by the user or subscriptions placed by direct referrals.
“Accordingly, the public is again warned of such possible Ponzi scheme offering high-yielding investments online. Please note that the Securities Regulation Code requires that said offer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public,” it said.
The SEC added that aside from the company not being registered with the agency, it is also not allowed to operate a crowdfunding intermediary or a funding portal.
“Those who act as salesmen, brokers, dealers or agents of such unauthorized entities like Paul Hermosa, Andrew Castillo, Rowel Raňa And Ellanor Macaballug in selling or convincing people to invest in their investment scheme offered including solicitations and recruitment through the internet may likewise be criminally prosecuted and penalized with a maximum fine of P5 million, or a penalty of 21 years of imprisonment or both.”
