Freecit/Freebit

February 3, 2022 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY This ADVISORY is prompted by reports and information gathered by the Commission that individuals or group of persons representing FREECIT/FREEBIT , is enticing the public, to invest in said entity. Based on the investigation conducted, FREECIT/FREEBIT 1 declares that it is an "internet business support company that uses pioneering internet technology to vigorously promote the business of their customers. It also claims that investors can increase their income by investing with it since it has set a higher interest rate than the one given by the banks. Hence, the longer you hold on to the investment, the higher the interest rate will be." The deposit time is set to 5 stages: 10 days; 30 days; 60 days; 90 days & 120 days. And the interest rate would vary depending on the chosen level. Thus, the minimum deposit for 10 days is 100, for 30 days is 500, for 60 days is 1,000, for 90 days is 2,000 and for 120 days is 5,000. Thereafter, the deposited amount and the interest earned will be automatically added to your "gold" earnings when the specified time is reached. FREECIT/FREEBIT is offering its membership program to the public starting with the entry level amount of Php0.00 for their Capricorn Account up to Php2,000,000.00 for their Sagittarius Account in exchange for "GOLD" for a daily profit for as little as 20 GOLD or a monthly profit of 600 GOLD to as much as 154,000 GOLD or a monthly profit of 4,620,000 GOLD. To sum it up, the said company is offering "Investment Products" with high yield of returns of up to 706% in just 120 days as shown in the table below: Briefly, an "investment contract" exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is prominent in the scheme of FREECIT/FREEBIT . ASTcaE As such, the Securities Regulation Code (SRC) requires that said offer and sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public. Based on the Commission's database, FREECIT/FREEBIT , 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 (SRC) . Further, the scheme employed by FREECIT/FREEBIT , shows indication of a possible "Ponzi Scheme" where monies 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 members in case of scarcity of new investors. 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 hereby advised NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by FREECIT/FREEBIT , and its representatives . Those who act as salesmen, brokers, dealers or agents of FREECIT/FREEBIT , in selling or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014) . Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed. Should you have any information regarding the operation of FREECIT/FREEBIT , and its representatives, please send your report through email at [emailprotected]. For the information and guidance of the public. Pasay City, February 3, 2022. Footnotes 1. Annex "A" FREECIT/FREEBIT's company profile.