The Securities and Exchange Commission (SEC) has ordered cryptocurrency platform Riscoin and its associated entities to immediately cease and desist from soliciting investments and selling unregistered securities in the Philippines. The order, issued by the SEC Enforcement and Investor Protection Department (EIPD) on May 14, 2026, targets Riscoin, Riscoin Exchange, Riscoin Trading, League of Seagull Ltd., and Seagull Alliance.
Scope of the Regulatory Order
Under the directive, the respondents and their representatives must immediately halt the sale and offering of unregistered securities in the form of investment contracts. The SEC also directed the group to terminate its internet presence related to the investment scheme. (Earlier BitPinas Article: SEC Flags Riscoin Operator as Unregistered Investment Scheme)
The commission stated that the asset freeze is intended to forestall grave damage to the investing public and preserve assets for investor benefit. According to the order, the respondents have five days from the receipt of the directive to file a verified Motion to Lift the CDO with the EIPD.
A copy of the order is available at the end of this article.
Lack of Cryptocurrency Licenses
A certification from the PhiliFintech Innovation Office confirmed that Riscoin is not licensed to operate as a Crypto-Asset Service Provider (CASP) in the Philippines. The office added that the entity is not authorized to deal in crypto-assets and has no pending applications or enrollments under the regulatory sandbox.
The EIPD noted that Riscoin operates a copy trading scheme where investors rely on signals from purported “crypto managers” who promise guaranteed daily returns. The promotional activities are conducted through online platforms including Facebook, Telegram, and Bonchat.
Background on the Scheme
The CDO follows regulatory advisories issued on Feb. 12, 2026, by the SEC Laoag and Zamboanga extension offices warning the public against the platform. Despite those warnings, the SEC noted that the group continued to solicit investments by presenting business registration certificates from foreign jurisdictions.
League of Seagull Ltd. claims registration in Colorado, United States, but the SEC emphasized that foreign registration does not authorize an entity to offer securities locally. The scheme requires a minimum investment of $500, or approximately 30,000 pesos, promising exponential growth based on continuous deposits.
The regulator previously reported that the group has expanded recruitment activities across several Philippine regions, including Metro Manila, Pangasinan, Central Luzon, Central Visayas, Northern Mindanao, and the Davao Region. In Pangasinan, the operation is promoted by a local group known as Team Bagwis Payaman through an office operating under the name Seagull Alliance Clothing in Pozorrubio.
SEC also issued a cease and desist order vs BG Wealth Sharing.
SEC Cease and Desist Order vs Riscoin
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