Hedge Bit Trading, Inc.

November 9, 2023 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based on the information gathered by the Commission, a number of individuals or group of persons claiming to represent HEDGE BIT TRADING, INC. headed by MYLEEN VILLANUEVA , are enticing the public to invest their money in said entity. HTcADC As posted on her Facebook account, ( https://www.facebook.com/photo/?fbid=285712861025411&set=pcb.859065908926447 ) a minimum investment of Five Hundred Pesos will have a guaranteed return ranging from 18%-144% in two months. Moreover, a prospective investor can earn an additional 20% of the amount of the investment of his/her recruit. CAIHTE The investment offering by HEDGE BIT TRADING, INC. constitutes solicitation of investments from the public as the investors are enticed to invest money from Php500.00 up to Php50,000.00 and in turn such investment will earn a guaranteed profit ranging from 18% to 144% in just 7 days, 1 month and 2 months, respectively, in violations of Sections 8, 26 and 28 of the Securities Regulation Code (SRC) and Section 11 in relation to Section 3 (f) of the Republic Act No. 11765 otherwise known as Financial Product and Services Consumer Protection Act. In this regard, the public is made aware that, an "investment contract," which is a kind of securities, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived primarily in the efforts of others which is prominent in the scheme of HEDGE BIT TRADING, INC. aScITE As such, the SRC requires that securities must first be registered with this Commission before it can be offered and/or sold to the public and the concerned entity and/or its agents should have the appropriate registration and/or license to offer and/or sell such securities to the public. Based on Commission's database, HEDGE BIT TRADING, INC. 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. Similarly, HEDGE BIT TRADING, INC. is not registered Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas and does not have a corresponding Certificate of Authority as a Money Service Business as required under Circular No. 1108, series of 2021 or the Guidelines for Virtual Asset Service Providers. Further, the scheme of employed by HEDGE BIT TRADING, INC. 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 participants if new investors become scarce. The offering and selling of securities in the form of investment contracts using the "Ponzi Scheme" which is fraudulent and unsustainable, is NOT a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme. In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by HEDGE BIT TRADING, INC. as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of HEDGE BIT TRADING, INC. Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code of the Philippines and such other laws, rules and regulations enforced by the Commission. Those who act as salesmen, brokers, dealers or agents of HEDGE BIT TRADING, INC. , in convincing people to invest in the offered scheme, and those involved in solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and Section 11 of the FCPA both penalized separately with a maximum fine of Five Million pesos (Php5,000,000.00) or penalty of Twenty-one (21) years of imprisonment, or both pursuant to Section 73 of the SRC (G.R. No. 195542, 19 March 2014). DETACa Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes will be correspondingly assessed. The Commission urges anyone who has knowledge or information about any business transaction of HEDGE BIT TRADING, INC. and/or its agents to report such activity to the Enforcement and Investor Protection Department at [emailprotected] . For the guidance of the public. Makati City, November 9, 2023.