Public told: Beware of Lele Gold Farm’s ‘Ponzi investment scheme’

January 20, 2023 - 5:39 PM
Photo shows Gold Farm character (Lele Gold Coin/Website)

The Securities and Exchange Commission warned the public against playing the video game Lele Gold Farm which encourages people to invest in exchange for an interest. 

SEC said that Lele Gold Farm, also referred to as Lele Gold Coin or Gold Farm “has the characteristics of a ‘Ponzi Scheme.’”

Under this scheme, the scammer uses funds from new investors to pay fake “returns” to earlier investors.

On the other hand, the last recruited members will not be paid. 

Given this, SEC advised the public not to invest in the investment scheme offered by Lele Gold Coin/Lele Gold Coin/Gold Farm. 

After the release of the SEC advisory, some social media users who were victims of the scam came forward.

One of them said that he lost P80,000 in the video game.

As of writing, some Gold Farm users have reported that there is a prompt in the app that reads: “server is about to shutdown.”

Photo shows a prompt in the Gold Farm app (Screengrab from Gold Farm Facebook group)

Investment scam checklist

To avoid investment scams, SEC advised the public to get the following information: 

  1. Name of the person and the company making the offer.
  2. Address of both the person and the company.
  3. Phone number, particularly the landline. Do not accept cellular phone number(s)—the owner cannot be tracked.
  4. SEC Registration as an investment taker. Please bear in mind the following:
  5. Only SEC-registered persons (brokers/dealers/salesmen) may offer or sell SEC-registered securities to the public.

The commission also listed the following warnings they should look at:

  1. Unwilling or hesitant to give any of the information
  2. No SEC registration or appropriate license to engage in activities indicated in 4b or 46.
  3. Claims to have QB license or SEC-registered securities.
  4. Fails to give information or not listed on the SEC Website.

To report investment scams, the public may contact the Enforcement and Investor Protection Department at (02) 584-6337 or seek assistance from NBI or police in case of an emergency situation.