The Philippines Securities and Exchange Commission (SEC) has issued a stern warning to the public against Skyline Crypto and Dry Goods Trading, an unauthorized entity claiming to offer lucrative investment opportunities through Facebook Messenger group chats. The regulator has identified the entity as a Ponzi scheme, which creates an illusion of profits by initially paying investors, but ultimately leaves them with significant financial losses.

Skyline Crypto's scheme involves offering investment opportunities ranging from PHP 1,000 to PHP 1,000,000, promising a return of 35% in just 15 days. The entity also offers a "Lock-In Program" that promises smartphones and motor vehicles as "rewards" for investors. However, the SEC has revealed that the entity is not registered and does not hold a license to sell securities, making it a serious violation of the Securities Regulation Code (SRC).

The SEC has advised the public not to invest in Skyline Crypto and Dry Goods Trading, as well as any other entities with similar schemes. Those involved in the scheme face criminal liabilities under the Financial Products and Services Consumer Protection Act (FCPA), which includes a maximum fine of PHP 5,000,000 or imprisonment of 21 years, or both.

The proliferation of crypto scams in the Philippines has caused significant financial harm to investors, particularly those new to the technology. Last year, the SEC collaborated with its US counterpart to address the growing issue of crypto-related fraud, highlighting the severity of the problem. Additionally, the anti-cybercrime group of the Philippine National Police has cautioned citizens on the risks involved in cryptocurrency gaming schemes, such as the "play-to-earn" model used by Axie Infinity, a metaverse game created on the Ethereum blockchain.

The SEC's warning serves as a reminder to investors to be cautious and vigilant when considering investment opportunities, especially those that seem too good to be true. It is essential to verify the legitimacy of any investment scheme and to consult with financial experts before making any investment decisions.