SEC shuts down XM, warns on Quantum Trust scams

The Securities and Exchange Commission (SEC) has moved to protect the public from online investment scams, halting the operations of XM and warning Filipinos against Quantum Trust’s fake high-return offers.

Citing a cease-and-desist order dated 7 November, the SEC said Friday that Trading Point Holdings Limited — operating as XM, XM Global Limited and XM Philippines — was found offering investments without a license.

SEC order

The order directed XM “to immediately stop engaging in the unlawful offering and/or selling of securities” and to take down its online presence tied to the scheme.

XM, endorsed by Emmanuel D. Pacquiao, Sr. and forex coach Jonathan Lou Reyes, was found to be offering derivatives, forex shares, and cryptocurrencies through its website and social media channels.

The SEC said the group is not registered in the Philippines and cannot legally sell securities.

Local investors the primary market

“The fact that XM has tapped and made available the local banks and e-wallets as its payment partners clearly shows that investors in the Philippines are primarily its target market,” the order read.

It added that evidence shows XM was offering unregistered securities, making the CDO “warranted for the protection of the investing public.”

The regulator also prohibited XM from moving or disposing of its assets to safeguard investor funds.

Fake endorsements, phishing flagged

Separately, the SEC warned the public against Quantum Trust for illegally soliciting investments while using a fabricated endorsement from Finance Secretary Frederick D. Go.

The SEC said Quantum Trust promises passive income of up to P180,000 weekly for a minimum investment of P19,800 in a supposed “state-funded project.” Its marketing uses aggressive pressure tactics and a phishing website pretending to be GMA News Online.

“Similar to previously exposed fraudulent investment scams, Quantum Trust promises unrealistically high returns with little to no risk,” the advisory said.

Avoid registering, downloading apps from unknown links

The SEC also warned against registering or downloading apps from unknown links, saying these can lead to financial loss and data theft. “Engaging with such websites or applications may not only lead to financial loss but also expose one’s personal data,” it added.

The public is urged to check the legitimacy of entities through the SEC website or the SEC Check App before investing.