SEC: “The scheme employed by LELE GOLD FARM/LELE GOLD COIN/GOLD FARM has the characteristics of a Ponzi Scheme’”
SEC – The Securities and Exchange Commission has advised the public not to invest in Lele Gold Farm (or Lele Gold Coin or Gold Farm).
SEC announced last January 13 that the Commission has issued an advisory on Lele Gold Farm.
The Commission said in an advisory that Lele Gold Farm is a mobile app that can be downloaded in Google Playstore. Based on the said app, Lele Gold Farm “offers you the luxury of earning while playing the games”.
According to the Commission, the public is made aware that an “investment contract” exists when there’s a placement of money or an investment in a common enterprise with a reasonable expectation of profits to be derived from the efforts of other people.
“As such, the Securities Regulation Code (SRC) requires that said offer and/or sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public,” the Commission said in an advisory.
Citing SEC’s database, the Commission said that Lele Gold Farm (or Lele Gold Coin or Gold Farm) is not registered as a corporation or partnership.
READ ALSO: SEC Issues Advisory vs “Play-to-Earn” Games And Other Non-Registered Foreign Entities
The Commission also said that Lele Gold Farm operates without the necessary license and/or authority to solicit, to accept or take investments or placements from the public, nor to issue “investment contracts” and other forms of securities as defined under Section 3 of the Securities Regulation Code (SRC).
According to the Commission, the scheme employed by Lele Gold Farm has the characteristics of a “Ponzi Scheme”. The Commission then advised the public not to invest or to stop investing in the investment scheme being offered by Lele Gold Farm and its representatives.
Meanwhile, a certain Facebook user responded to the SEC advisory on Lele Gold Farm.
In a Facebook post, a certain Lì questioned the fud (fear, uncertainty, and doubt) about the Lele Gold Farm and clarified that the said app is not an investment game. Lì went on to tell his bashers to play the game and earn money from it.
“Sa mga interested sa game guide ko kayo hanggang dulo tska mga magandang diskarte na pwedeng gawin either invest or free to play ka walang problema,” Lì said.
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