Centric Cash company Centric Foundation responds to FUD amid SEC PH concerns
Back in June 2020, Securities and Exchange Commission Philippines released an advisory against Centric Foundation. The original post can be found here:
SEC PH states in the advisory:
“CENTRIC CORP, LTD. and CENTRIC FOUNDATION (CENTRIC), the developer of CENTRIC RISE and CENTRIC CASH
CENTRIC CORP., LTD. and CENTRIC FOUNDATION including its CENTRIC RISE and CENTRIC CASH are NOT REGISTERED with the Commission and OPERATE WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC).”
In response to this Advisory, Centric Foundation issued a formal notice to Cease and Desist on June 14th, 5 days after the Advisory was issued, and outline their reasoning for issuing the C&D.
“Formal Notice to Cease and Desist Immediately
We have just become aware of the following public statements released on the government website sec.gov.ph. Please see attached screen captures and pdf download of the statements as at Sunday 14th June 2020. We formally request that you retract all statements from your website, internet, and search engines. Your agency has made an overwhelmingly large number of statements which are incorrect and misleading. These statements could result in damaging our businesses reputation which would result in substantial losses. Throughout this document you make allegations and assert that Centric is a possible Ponzi scheme, users can trade on “our private exchange” with other members, we are creating a referral program and that Centric is a Derivative which is classified as a Security under Philippine Law. All of these statements are false and misleading, we are also seriously concerned with the claims and twisted facts your office has published as this document is riddled with claims and statements by your agency which are easily debunked with minimal research. We also note for the record that no previous communication by your office has been attempted.
As an example of the blatant misinformation, our public statement, and position on referral programs for users of Centric; https://www.joincentric.com/faq-general/
Just for the avoidance of any doubt, a layer two solution is another business (NOT CENTRIC). We clearly state on our website that Centric doesn’t have a referral program. There is no software built that enables the referral of another users and no users are able to generate rewards for such behavior. Your office makes the following statement;
‘CENTRIC also added that it is creating a referral program for its investors that will reward them for sharing and/or offering CENTRIC RISE and CENTRIC CASH to others’
Some of the other statements which are false and misleading;
Statement: ‘Thus, any dubious promise of definite returns as offered by CENTRIC is unaccountable because such a scheme is considered as “too good to be true” which is an indication of a possible Ponzi Scheme.’
Response: The first point, it’s not a promise, the protocol value is literally written into the blockchain and can not be changed once a price block is created yearly in advance. A ponzi scheme would require customers to give us (Centric) something in return for us promising returns. Customers don’t give us anything and we don’t give them anything back. I highly recommend your agency read the white paper and research the product as this is not what Centric is, does, or how the protocol is designed to work. You have taken 1 line of text (which was screen-captured and underlined) out of context and twisted it without understanding what the product is, how it works, or its functions.
Statement: “It must be emphasized that the CENTRIC RISE and CENTRIC CASH are considered as “Derivatives” which are securities as defined under Section 3.1 of the Securities Regulation Code (SRC).”
Detailed and highly researched reports by industry-leading law firms have released legal opinions as the classification of Centric Rise and Centric Cash which have been attached in this email challenge this claim by your office that Centric Rise or Centric Cash are derivatives or securities. Could you please provide the legal opinion or research provided to your agency on how CNR & CNS are Derivatives/Securities and how it draws this conclusion specify what asset is used to value ether CNS or CNR?
Statement: “CENTRIC suggests that its investors should hold their tokens momentarily or they may opt to sell or trade their tokens directly to another or through a CENTRIC’s private exchange that imposes a “Trading Bonus System” or a steep minimum trade volume requirement which is a favorite tool used by scammers to prevent their investors from withdrawing their monies in its system.”
Response: Centric is not an exchange, will never be an exchange and once Centric launches, customers that received their tokens for FREE will be able to trade them on exchanges (who are registered and licensed businesses to operate as an exchange).
This document is riddled with misleading information, statements which are not true, and twisted facts in order to draw consolation and cast a negative light over Centric in order to scare customers. As you would be aware the general population look to Governments around the world as a source of consumer protection against scams and malicious bad actors and your agency takes advantage of this trusted role within the community by making statements that are false and misleading about Centric. These statements are a clear violation of defamation laws that protect companies and individuals from false and misleading statements and we intend to defend our businesses’ positive reputation and good standing rigorously. Put simply, you are painting a picture of the product and services we apparently offer to customers which just isn’t true. It could also be inferred that even just been listed on your website is negative and that Centric is breaking the law.
We are formally putting the Securities and Exchange Commission Philippines on notice in the event the above advisory document released on the 9th June 2020 is not retracted by your agency any later than Tuesday 16th June 2020. Please find attached recent legal opinions released on Centric, its business model, technology, and audited code which indicate and show a legal framework for the conclusions that both CNR and CNS are NOT SECURITY/DERIVATIVES as claimed by your office. You draw the conclusion in your advisory document that Centric Rise (CNR) and Centric Cash (CNS) are Derivatives under Philippine law. We challenge and refute this statement and ask on what bases did your agency draw this conclusion? We are happy to provide your agency with any additional information about our business if required and happy to work with any Government agency around the world to ensure correct classification and regulation of Centric’s products and services to ensure Centric is following the appropriate local and international laws. If you have any questions please feel free to reach out to us directly and we’ll be happy to clarify any questions or concerns you might have. In the event, we ever get into the business of operating an exchange, selling securities, or derivatives we’ll be sure to register with your agency where permitted to do so under Philippine law.”
This Advisory from the PH SEC has seemingly been the basis of the 4Chan neckbeards and Twitter fudders’ arguments and are thoroughly debunked by Centric Foundation’s team as shown in this C&D.
Read that last statement too. “In the event, we ever get into the business of operating an exchange, selling securities, or derivatives we’ll be sure to register with your agency where permitted to do so under Philippine law.” This shows Centric’s integrity and desire for compliance.
Centric is not a scam, Ponzi, MLM. Centric has never been any of these things.