The Securities and Exchange Commission (SEC) has cautioned the public against engaging with Arcane Digital Marketing and Mitrade, citing unauthorized solicitation of investments without the necessary license.
According to the SEC, the investment strategies employed by both entities bear resemblance to pyramid or Ponzi schemes. In these setups, investor earnings are derived from recruitment fees rather than the sale of tangible products or services, with new members’ contributions used to compensate existing investors.
Arcane Digital Marketing, an online social media platform, is reportedly enticing individuals to invest a minimum of P1,000 for a business partnership, promising potential profits ranging from 12 percent to 45 percent within 45 days.
Meanwhile, Mitrade, an online securities broker, lacks authorization to sell or offer securities to the public in the Philippines.
The SEC strongly advises the public to refrain from investing or continuing investments in schemes offered by Arcane Digital and Mitrade, as well as similar entities involved in the offering and sale of investment contracts without prior registration with the commission.
“The commission remains steadfast in its commitment to eradicating illicit investment activities through financial literacy campaigns and public advisories,” said the SEC.