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- Lele Gold Farm, a mobile application that promised earnings through playing games, has shut down following an advisory from the Securities and Exchange Commission (SEC) warning the public about it being a Ponzi scheme.
- After the shutdown of Lele Gold Farm, the question of INFLUENCER RESPONSIBILITY has come to the forefront.
- Lele Gold reportedly posted a statement on January 17, 2023, stating that “Lele Gold together with 888 Casino has now officially shut down” due to the current issue with the PNP and SEC.
- The SEC advised the public not to invest in or continue investing in the scheme being offered by Lele Gold and its representatives, and warned that those involved in promoting or facilitating the scheme may be held criminally liable.
In the wake of the Securities and Exchange Commission’s (SEC) advisory about Lele Gold Farm being a Ponzi scheme, the mobile application has reportedly shut down.
Various accounts posted a statement purportedly from Lele Gold on January 17, 2023, stating that “Lele Gold together with 888 Casino has now officially shut down. Because of the current issue about the PNP and SEC, Lele Gold Farm and 888 Casino was Forced to Closed and Completely Shutdown 01/17/23. For further notice we will update you about your accounts.”
It has been observed that reactions from social media has been mixed about the advisory from the Commission, while a number of content creators and streamers promoting the game have removed their content. (Read More: SEC Advisory vs Lele Gold Farm Draws Mix Reactions From Public, Influencers Allegedly Remove Lele Gold Content)
As previously reported, the SEC issued a warning to the public about the illegal activities of Lele Gold Farm. The mobile application promised earnings through playing games but in reality, it was a Ponzi scheme designed to scam unsuspecting investors.
The SEC stated that the mobile application is NOT REGISTERED as a corporation or partnership and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC).
Furthermore, the SEC revealed that the scheme employed by Lele Gold Farm has the characteristics of a “Ponzi Scheme” where money from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors.
The SEC has advised the public NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by Lele Gold Farm and its representatives. The SEC also warned that those who promote or help the scheme, such as salesmen, brokers, and recruiters, may face legal consequences and fines up to ₱5 million or 21 years in prison.
This article is published on BitPinas: Lele Gold Shuts Down Following SEC Advisory: Ponzi Scheme Scams Investors
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.