The Securities and Exchange Commission (SEC) has stepped up its crackdown on unauthorized cryptocurrency investment schemes as it issued cease and desist orders (CDOs) against Riscoin and BG Wealth Sharing Ltd. within days of each other.

Citing a 14 May order, the SEC said Tuesday its Enforcement and Investor Protection Department (EIPD) directed Riscoin and its related entities to stop activities linked to their investment scheme. 

The order covers Riscoin Exchange, Riscoin Trading, League of Seagull Lt., Seagull Alliance, and their officers, agents, and representatives.

The SEC also barred the group from moving funds in its bank accounts or disposing of assets. The measure aims to protect investors and preserve assets while the case is being addressed.

According to the SEC, Riscoin continued to solicit investments despite an advisory issued in February. The company allegedly offered a crypto copy-trading scheme, claiming investors could earn unusually high and guaranteed daily returns through "crypto managers."

The SEC found that Riscoin is not registered with the Commission, has not registered any securities for sale, and does not have a license to operate as a crypto-asset service provider.

“The act of [Riscoin] through their leaders and/or its agents in selling/offering unregistered securities operates as a fraud to the public, which, if unrestrained, will likely cause grave injury or prejudice to the investing public,” the order read.

“Further, unless restrained, the act of [Riscoin] through their leaders and/or its agents in selling/offering unregistered securities constitutes a continuing violation of the provisions of the SRC and the FCPA,” it added.

Six days later, the SEC issued a similar order against BG Wealth Sharing Ltd. and its founder, Stephen Beard.

The regulator ordered them to stop selling or offering unregistered securities until they secure the required approvals.

The SEC said BG Wealth targeted investors, particularly overseas Filipino workers, with promises of high returns from cryptocurrency copy trading through the DSJ Exchange platform.

The scheme allegedly offered a daily interest rate of 1.3 percent for a minimum investment of $500, or about P30,000.

SEC records showed that BG Wealth is not registered as a corporation or partnership and does not have a license to offer securities. 

The Commission had already warned the public about the scheme in January, but the company allegedly continued promoting it on social media.