The Securities and Exchange Commission (SEC) warned the public against dealing with Pogi Breeds International, a group of players of the Axie Infinity game using investments solicited from clients.
Pogi Breeds is headed by Gino Mendoza, also known as Nigo Tekashii, according to an advisory by SEC’s Enforcement and Investor Protection Department.
The group offers a co-partnership program where clients are enticed to invest a minimum of P5,000 up to P250,000, which promises a return of P100 to P25,000 daily or 2% daily or 10% weekly earnings for 45 days. Total contract earnings range from P4,500 up to P225,000 or 90% per contract in 45 days.
Pogi Breeds promises co-partners their investments will be returned after 59 days or at the end of the contract.
SEC said, “The co-partnership program offered by Pogi Breeds clearly falls under the definition of securities in the form of an investment contract which is mandated by Republic Act No. 8799 or the Securities Regulation Code [SRC] to be registered with the commission before these securities are offered to the public.”
Pogi Breeds and its allied brands are not registered with the SEC and are not authorized to solicit investments from the public. It has no registration and license from SEC to solicit investments. Under the Securities Regulation Code (SRC), penalty for violation is set at a maximum fine of P5 million or imprisonment of 21 years or both.
SEC added that Axie Infinity or its developer Sky Mavis are not registered and are not licensed to do business in the country as a branch, regional area/operating headquarters or a representative office. “They do not possess any secondary license to conduct any regulated activity within the Philippines.”
Bloomberg reported that Axie Infinity’s daily active users increased from 30,000 in April this year to more than 1 million last August, most players coming from developing countries hit hard by the pandemic.
Originally built on the Ethereum blockchain, Axie recorded around $30 million worth of Ether transfers a day over the past month, according to Etherscan.