BUTUAN CITY (February 14) — The Securities and Exchange Commission (SEC) has warned investors in Caraga against an unauthorized online investment scheme allegedly operating under the names Seagull Alliance, League of Seagull Ltd., and Riscoin trading platform.
In an advisory issued February 10, the SEC’s Butuan Extension Office said the group has been actively recruiting investors across the region through Facebook and Telegram messaging applications.
According to the Securities and Exchange Commission – Butuan Extension Office, League of Seagull Ltd. has been advertising and soliciting investments online despite not being registered with the Commission.
Violations of Securities Laws
The SEC said the group’s activities violate provisions of Republic Act No. 8799 or the Securities Regulation Code, specifically Sections 8, 26, and 28, as well as Section 11 of Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act.
Under Philippine law, securities offered to the public must be properly registered, and entities soliciting investments must hold the necessary secondary license from the SEC.
Based on the Commission’s database, League of Seagull Ltd. and its associated individuals are neither registered nor authorized to offer, sell, or distribute securities to the public.
‘Crypto Copy Trading’ Pitch
In a separate advisory from the SEC central office, the scheme allegedly entices the public to invest under the guise of cryptocurrency “copy trading.”
The investment pitch reportedly promises exponential growth of funds through multiple stages, contingent on continuous deposits. The minimum investment required is USD 500, or roughly ₱30,000.
The scheme also allegedly offers bonuses to participants who recruit additional investors — a red flag often associated with pyramid or Ponzi-type operations.
“Residents are enticed to invest and recruit because the League of Seagull Ltd. is also giving bonuses to those who could recruit and invest,” the SEC-Butuan said.
LGUs Alerted
The Butuan extension office said it has dispatched advisories to local government units across Caraga to warn residents about the group’s unauthorized recruitment activities.
The SEC urged the public to exercise caution and verify with the Commission before investing in online schemes, particularly those promising unusually high or guaranteed returns.
Authorities reminded investors that once funds are transferred to unregistered entities — especially those operating primarily through messaging apps and cryptocurrency channels — recovery becomes extremely difficult.
Residents are encouraged to report suspicious investment activities to the SEC or local authorities.
