SEC Orders Riscoin Network to Halt Crypto Solicitation and Unregistered Securities Sales in the Philippines
The Philippine Securities and Exchange Commission has ordered Riscoin and a cluster of related entities to immediately stop soliciting investments and selling unregistered securities, escalating the regulator’s crackdown on alleged crypto investment schemes. The cease-and-desist order covers Riscoin, Riscoin Exchange, Riscoin Trading, League of Seagull Ltd., and Seagull Alliance, according to reporting on the SEC action.
What the SEC ordered
The SEC’s Enforcement and Investor Protection Department issued the order on May 14, 2026, directing the respondents and their representatives to immediately halt the sale and offering of unregistered securities in the form of investment contracts. The regulator also barred the entities from transacting through their depository bank accounts and from transferring or disposing of their assets.
The order further required the respondents to terminate their internet presence linked to the alleged investment scheme. According to reporting, the SEC said the asset freeze was intended to prevent further harm to the investing public and preserve assets for possible investor benefit.
Alleged copy-trading scheme drew scrutiny
The SEC found prima facie evidence that the entities were engaging in unauthorized investment-taking through a cryptocurrency copy-trading scheme, where investors allegedly relied on “crypto managers” who promised guaranteed daily returns. The promotions were carried out through online platforms including Facebook, Telegram, and Bonchat.
The commission concluded that the arrangement fit the definition of an investment contract under Philippine securities law, based on investors placing money into a common venture with an expectation of profits generated primarily by the efforts of others. It also said the conduct may amount to fraud under the Financial Products and Services Consumer Protection Act.
Regulator says entities were not authorized in the Philippines
The SEC said the companies were not registered as corporations or partnerships in the Philippines and had no license to sell securities. Riscoin was not licensed to operate as a Crypto-Asset Service Provider (CASP) and had no pending sandbox application or enrollment.
A separate point emphasized by the commission was that foreign registration does not, by itself, authorize a company to solicit investments or offer securities in the Philippines. That finding was also highlighted in reporting on League of Seagull Ltd., which said the entity claimed registration in Colorado, United States.
Why the order matters
The SEC’s action shows how Philippine regulators are treating crypto copy-trading promotions: as potential securities offerings when investors are promised returns tied to the efforts of promoters or trading managers. In the SEC’s view, that makes registration and proper authorization essential before any public solicitation can lawfully proceed.
The order also gives the respondents a narrow path to challenge the action—they have five days from receipt of the directive to file a verified motion to lift the cease-and-desist order with the EIPD.
Part of a broader enforcement push
The Riscoin order follows other recent SEC actions against crypto-related schemes, suggesting a more aggressive posture toward unregistered digital-asset promotions in the country. Reporting noted that the SEC had already warned about Riscoin in February before issuing the May cease-and-desist order.
For investors, the case underscores a familiar regulatory warning: claims of high, guaranteed returns, especially when paired with social-media recruitment and foreign registrations, often draw heightened scrutiny from securities regulators.
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