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Action against fraudsters, cryptocurrency dealers

Updated March 29, 2019

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SECP has initiated legal proceedings to wind up at least nine companies.— Reuters/File
SECP has initiated legal proceedings to wind up at least nine companies.— Reuters/File

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has initiated legal proceedings to wind up at least nine companies offering cryptocurrencies and Ponzi schemes.

Legal proceedings against these companies have been initiated under Section 301 read with Section 304 of the Companies Act, 2017.

The SECP has issued notices to some companies involved in businesses which are prohibited and contrary to their object clauses of the Memorandum of Association.

The SECP advised general public not to be misled by any schemes, deals or plans being offered by Gold Transmit Network Technology (Pvt.) Limited, Green Apple Super Market (Pvt.) Limited, Galaxy Typing Jobs (SMC-Pvt.) Limited, 3-A Alliance (Private) Limited, Pak Memon Impex (Private) Limited, Memon Corporation (Pvt.) Limited, Humanitas Meritus (SMC-Private) Limited, IDG Enterprises (Private) Limited and Ayat Enterprises (Smc-Private) Limited.

These companies were found involved in unlawful activities such as collecting unauthorised deposits from the public, leasing of cars, houses, electronic alliances and other goods and materials, without lawful authority while others dealing in cryptocurrencies and offering Ponzi/multi level marketing (MLM), referral marketing, pyramid schemes, employment schemes in Pakistan.

Such schemes, offering hefty profits and incentives can deprive the unsuspecting public of their hard-earned money who fall prey to the inducements, the SECP observed.

Published in Dawn, March 29th, 2019