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SEC Slaps Over ₱1M Fine on CryptoAsset OPC, Founders Convicted | BitPinas

  • The SEC imposed a fine and revoked the certificate of incorporation for CryptoAsset Trading OPC due to its involvement in fraudulent investment activities.
  • CryptoAsset Trading OPC, registered as a one-person corporation, was noted to engage in investment solicitation despite its stated purpose being limited to buying, selling, and distributing goods.
  • Despite warnings and investigations revealing its lack of necessary permits and licenses, CryptoAsset continued its unauthorized offering of investment securities to the public, resulting in legal action by the SEC.

The Securities and Exchange Commission (SEC) issued a formal order on February 2, imposing a fine and revoking the certificate of incorporation and registration as a corporation for CryptoAsset Trading OPC. The Commission highlighted that the order was in response to the company’s involvement in fraudulent investment activities.

What is CryptoAsset Trading OPC?

The SEC noted that the entity is registered as a one-person corporation registered under Company Registration Number 2021100028463-07. The company’s principal office address is located at Lot 14 Blk 38 Josefa Amaia Scapes Barandal Calamba, City of Calamba, Laguna, Region IV-A (CALABARZON), 4027. 

Moreover, the individuals linked to CRYPTOASSET are identified by the Commission as Janus Alfonsus Alvez Tisalona, Edwin Lara Tisalona, and Jocelyn Lacandula Alvez.

In the video, Janus shares update on trading.

According to the SEC, CryptoAsset was only registered only to engage in “buying, selling distributing, marketing on wholesale and retail basis insofar as may be permitted by law, all kinds of goods, wares, and merchandise of every kind and description, and enter into all kinds of contracts for export, import, purchase, acquisition sale on a wholesale and retail basis.”

Photo for the Article - SEC Slaps Over ₱1M Fine on CryptoAsset OPC, Founders Convicted
Photo for the Article - SEC Slaps Over ₱1M Fine on CryptoAsset OPC, Founders Convicted
Selection of emails received by SEC regarding CryptoAsset OPC

Revoked Registration

Accordingly, the order cites violations related to the company’s engagement in investment solicitation and taking activities from the public, contrary to its stated purpose as per its Articles of Incorporation. 

Further, the Commission also stressed that it had received numerous emails reporting on the activities of CryptoAsset which prompted its action. As per the SEC’s Enforcement and Investor Protection Department’s (EIPD) investigation, Cryptoasset offered investment opportunities to the public with a minimum investment of ₱1,000, providing four options with the potential for up to 50 percent profit in 40 days.

Type Minimum (%)Investment Profit Duration (Days)
Silver Php 1,000 5% 7
Gold Php 1,000 10% 12
Platinum Php 1,000 20% 20
Executive Php 1,000 50% 40

Consequently, the EIPD requested various operating departments within the SEC to verify if Cryptoasset possesses the necessary permits and licenses to engage in such activities. Following investigations, it was determined that Cryptoasset lacks the required registrations and licenses, and Janus Alfonsus Alvez Tisalona is not a registered securities salesman. 

Further, despite being registered as a one person corporation (OPC), Cryptoasset was issued an advisory warning against its activities, emphasizing its unauthorized offering of investment securities to the public in 2021.

Action taken by the SEC

Photo for the Article - SEC Slaps Over ₱1M Fine on CryptoAsset OPC, Founders Convicted

On October 12, 2023, Tisalona was convicted of breaking securities and cybercrime laws. She was fined ₱250,000 and ordered to pay ₱342,525 in damages plus ₱50,000 for attorney’s fees.

Subsequently, on January 23, the SEC issued an order to CryptoAsset, seeking clarification regarding the non-revocation of its Certificate of Incorporation, citing serious misrepresentation and the possibility of administrative penalties against its affiliates. Despite being served with the order, CryptoAsset failed to respond, thus waiving its right to present its case. 

The SEC determined that CryptoAsset’s activities amounted to an investment contract, necessitating registration which it lacked. As a result, CryptoAsset’s Certificate of Incorporation was revoked for violating securities regulations and engaging in ultra vires conduct. Additionally, it was fined ₱1,000,000, with payment required within 15 days.

This article is published on BitPinas: SEC Revokes the Registration of CryptoaAsset Trading OPC

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