By Eileen Mencias
The Securities and Exchange Commission en banc has ordered the 50K Club/Community Help Coin (CHC)/Cryptomarketers/Cryptomarketers Worldwide and its owner, Michael Viola to stop unauthorized investment solicitation activities.
The staff and representatives of these companies were also barred from conducting any transactions involving funds in banks or financial institutions. Viola, 50K Club, or CryptoMarketers have five days to file a request to lift the order.
The SEC confirmed that Crypto Marketers was marketing unregistered securities in the form of subscription packages, with investment amounts ranging from $50 to $1,000.
As early as November 2022, the SEC had placed Crypto Marketers under surveillance following complaints from the public. Potential investors were informed that Crypto Marketers was formerly known as Community Helper Coin or CHC, headed by Viola, who also owns the 50K Club Office.
They were led to believe that the system was operational under its mother company “Crypto PR,” engaged in the cryptocurrency business valued at over a million dollars.
Earnings purportedly came from online ads of Crypto PR, with membership requiring payment of subscription packages ranging from $100 to $4,000, maturing within 60 to 100 days. Returns ranged from 240% to 300%, with additional daily earnings promised between 0.6% to 1.2%.
Referrals were incentivized with a 10% return for each individual referral and a 10% bonus upon new members’ package purchases. VIP status was conferred upon members with at least 10 recruits, earning $100 plus a 5% share of their recruits’ subscription packages.