The Philippines Securities and Exchange Commission (SEC) has issued a formal warning against Mining City, a cryptocurrency investment scheme accused of operating unregistered securities. The action, dated September 10th, names CEO Gregory Rogowski, Philippine team leader Anthony Aguilar, and Facebook administrator Jhon Rey Grey as key promoters.
Mining City allegedly operates without the necessary licensing or authority to solicit investments from the public in the Philippines. The company has not registered with Philippine regulators. Philippine law strictly prohibits the offering of unregistered securities.
An investigation by the SEC determined Mining City functions as a Ponzi scheme. The commission found that funds from new investors are used to pay fabricated profits to earlier participants. This structure is designed to enrich those at the top of the recruitment hierarchy. The scheme shares notable similarities with BitConnect, a previous cryptocurrency investment platform that collapsed after being identified as a Ponzi operation.
Initially reviewed in July 2019 as a mining-focused investment platform, Mining City has since incorporated BTCV, a cryptocurrency token. The SEC now describes the operation as a "Ponzi points scheme." Gregory Rogowski and Eyal Avramovich reportedly maintain control at the management level.
Because Mining City utilizes Filipino promoters to recruit locally, the SEC is specifically targeting individuals actively soliciting investors within the country. Those found promoting Mining City face significant penalties, including fines up to 5 million Philippine pesos (approximately $103,227) or imprisonment for up to twenty-one years. The SEC also stated it will report violators to Philippine tax authorities.
The regulator strongly advises all Filipinos currently invested in Mining City to cease participation and withdraw their funds immediately. This public warning serves as explicit notification that the scheme is illegal and presents a substantial financial risk to participants.