{"investigation":{"slug":"riscoin","entity_name":"Riscoin","trust_score":2,"severity_base":null,"score_modifier":0,"confidence":0.91,"status":"published","content_type":"investigation","summary":"Riscoin is an alleged cryptocurrency copy-trading investment scheme operated under the corporate umbrella of League of Seagull Ltd. and its associated brand Seagull Alliance. On May 14, 2026, the Philippine Securities and Exchange Commission issued a cease-and-desist order against Riscoin, Riscoin Exchange, Riscoin Trading, League of Seagull Ltd., and Seagull Alliance for soliciting unregistered securities and operating a fraudulent, Ponzi-like scheme. Multiple regulators in New Zealand, Australia, and the Philippines have independently warned the public against the platform, and the scheme is alleged to have collapsed in May 2026 when withdrawal fees were raised to 99.8 percent, effectively blocking all investor redemptions.","sections":[{"content":"On May 14, 2026, the Philippine Securities and Exchange Commission (SEC) Enforcement and Investor Protection Department issued a cease-and-desist order against Riscoin, Riscoin Exchange, Riscoin Trading, League of Seagull Ltd., and Seagull Alliance. The order mandated an immediate halt to all solicitation of investments from the Philippine public. The SEC certified that none of the named entities were registered as a corporation or partnership in the Philippines, none held a license to sell securities, and none were authorized to operate as a crypto-asset service provider. Violations cited included Sections 8, 26, and 28 of Republic Act 8799 (Securities Regulation Code) and Section 11 of Republic Act 11765 (Financial Products and Services Consumer Protection Act). Individuals acting as brokers, agents, promoters, recruiters, influencers, or enablers may face fines of up to 5 million Philippine pesos and/or imprisonment of up to 21 years under Section 73 of the SRC. Prior to the Philippine action, on November 10, 2025, the New Zealand Financial Markets Authority (FMA) issued a warning against riscoin.com, citing an unregistered entity offering financial products, market manipulation, and fraud. On November 19, 2025, the Australian Securities and Investments Commission (ASIC) added riscoin221.com to its Investor Alert List, warning consumers that the business was operating unlicensed in Australia. The Philippine SEC also issued earlier public advisories on February 12, 2026, before escalating to a cease-and-desist order in May.","heading":"Regulatory Actions","sources":[{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"news_article","credibility":2},{"url":"https://business.inquirer.net/591797/sec-shuts-riscoin-over-alleged-crypto-scam","name":"SEC shuts Riscoin over alleged crypto scam — Inquirer Business","type":"news_article","credibility":2},{"url":"https://coinnewsbyte.com/regulation/sec-warns-against-league-of-seagull-ltd-linked-to-riscoin-scheme/","name":"SEC Warns Against League of Seagull Ltd. Linked to Riscoin Scheme — CoinNewsByte","type":"news_article","credibility":2},{"url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","name":"League of Seagull Review: Riscoin signals 'click a button' Ponzi — BehindMLM","type":"research","credibility":2}],"severity":"critical"},{"content":"Riscoin marketed itself as a cryptocurrency copy-trading platform in which users relied on so-called 'crypto managers' who allegedly generated guaranteed daily returns from cryptocurrency trading. The minimum investment threshold was $500 (approximately 30,000 Philippine pesos) or, in some markets, 100 USDT. The platform promised approximately 1 percent returns per trading signal processed, with the alleged mechanism requiring users to 'click a button' inside the Riscoin application to execute trades. According to the BehindMLM analysis, these button clicks were technically meaningless and served no legitimate trading function. The scheme featured a three-level unilevel referral commission structure: 10 percent at Level 1, 13 percent at Level 2, and 18 percent at Level 3, consistent with multi-level marketing recruitment models. Philippine SEC investigators concluded the operation bore characteristics of a Ponzi scheme, in which payouts to earlier participants were sourced primarily from contributions by new investors rather than any legitimate business activity. Riscoin offered no retailable products or services independent of the investment program itself.","heading":"Scheme Mechanics and Structure","sources":[{"url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","name":"League of Seagull Review: Riscoin signals 'click a button' Ponzi — BehindMLM","type":"research","credibility":2},{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"news_article","credibility":2}],"severity":"critical"},{"content":"League of Seagull Ltd., the alleged parent entity behind Riscoin, claims to be headquartered in Colorado, USA. According to records from the Colorado Secretary of State, the company filed articles of incorporation on September 3, 2024, with Colorado Entity ID 20241936415. Ernest Dewey May Jr. is listed as the registered agent. The Philippine SEC emphasized that U.S. state registration does not authorize operations in the Philippines. Individuals named in connection with the scheme include Charles Hamilton (identified in a leadership role), Martin Collins (technology/compliance), David Morley (trade signal oversight), Patrick Iqbal (compliance), Olivia Coffman (marketing/recruitment), Margaret Alston (marketing/recruitment), Alisana Miller (operations), and Annabell (operations). BehindMLM reported that League of Seagull provided no verifiable ownership or executive information on any of its websites and characterized the named individuals as alleged and potentially fictional personas. In the Philippines, local promotional activities were allegedly conducted by a group called Team Bagwis Payaman, which operated out of an office front named Seagull Alliance Clothing in Pozorrubio, Pangasinan.","heading":"Corporate Structure and Operator Identities","sources":[{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"news_article","credibility":2},{"url":"https://coinnewsbyte.com/regulation/sec-warns-against-league-of-seagull-ltd-linked-to-riscoin-scheme/","name":"SEC Warns Against League of Seagull Ltd. Linked to Riscoin Scheme — CoinNewsByte","type":"news_article","credibility":2},{"url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","name":"League of Seagull Review: Riscoin signals 'click a button' Ponzi — BehindMLM","type":"research","credibility":2}],"severity":"high"},{"content":"The scheme began expanding Philippine operations on September 19, 2024, establishing a presence across multiple regions including Pangasinan, Metro Manila, Central Luzon, Central Visayas, Northern Mindanao, and the Davao Region. Investors were recruited via Telegram and Bonchat messaging applications, as well as through social media platforms. The Philippine SEC's Butuan extension office also issued warnings to investors in the Caraga region. Locally, Team Bagwis Payaman in Pangasinan allegedly conducted in-person recruitment from an office operating under the Seagull Alliance Clothing front business in Pozorrubio. Prior to the Philippine expansion, the scheme had already attracted regulatory attention in New Zealand and Australia, indicating international recruitment efforts.","heading":"Geographic Reach and Recruitment Methods","sources":[{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"news_article","credibility":2},{"url":"https://www.pna.gov.ph/articles/1272829","name":"SEC-Butuan warns public on 3 investment scams in Caraga Region — Philippine News Agency","type":"news_article","credibility":2}],"severity":"high"},{"content":"On approximately May 13, 2026, one day before the Philippine SEC cease-and-desist order was published, the Riscoin platform allegedly set withdrawal fees to 99.8 percent, effectively preventing investors from recovering any funds. This tactic is consistent with documented Ponzi scheme exit mechanics. Prior to the alleged collapse, investors who attempted withdrawals reported that the platform refused to process redemptions and demanded additional payments described as taxes or withdrawal fees, with no funds released even after those payments were made. BehindMLM documented that since its mid-2025 launch, League of Seagull burned through dozens of domains due to fraud alerts, indicating a deliberate pattern of domain rotation to evade enforcement. Known domains associated with the scheme include riscoin.com, riscoin.icu, riscoin.me, riscoin.net, riscoin.shop, riscoin68.com, riscoin8.com, riscoin9.com, risneibu.cc, and v-seagull.com.","heading":"Collapse Indicators and Investor Harm","sources":[{"url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","name":"League of Seagull Review: Riscoin signals 'click a button' Ponzi — BehindMLM","type":"research","credibility":2},{"url":"https://tradersunion.com/scam-or-safe/riscoin-review/","name":"Is Riscoin a Safe or Scam? (May 2026) — TradersUnion","type":"research","credibility":3}],"severity":"critical"},{"content":"The Philippine SEC's cease-and-desist order cited multiple statutory violations. Riscoin's investment program allegedly constituted an unregistered securities offering under Section 8 of the Securities Regulation Code, as shares in a common enterprise with expectation of profits derived from others' efforts qualify as investment contracts under Philippine law. Solicitation of investments without a broker-dealer license violated Section 28 of the SRC. The public offering of unregistered securities through social media and electronic messaging violated Section 26. Additionally, the conduct allegedly constitutes financial fraud under Section 11 of Republic Act 11765. The SEC stated it would pursue administrative and criminal actions against all individuals found to have promoted or operated the scheme.","heading":"Unregistered Securities and Legal Violations","sources":[{"url":"https://business.inquirer.net/591797/sec-shuts-riscoin-over-alleged-crypto-scam","name":"SEC shuts Riscoin over alleged crypto scam — Inquirer Business","type":"regulatory","credibility":2},{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"regulatory","credibility":2}],"severity":"critical"}],"timeline":[{"date":"2024-09-03","event":"League of Seagull Ltd. filed articles of incorporation with the Colorado Secretary of State (Entity ID 20241936415); Ernest Dewey May Jr. listed as registered agent.","source":"BitPinas / CoinNewsByte","source_url":"https://bitpinas.com/regulation/sec-flags-riscoin/"},{"date":"2024-09-19","event":"Riscoin / League of Seagull began expanding operations in the Philippines across Pangasinan, Metro Manila, Central Luzon, Central Visayas, Northern Mindanao, and Davao Region.","source":"BitPinas","source_url":"https://bitpinas.com/regulation/sec-flags-riscoin/"},{"date":"2025-04-25","event":"New Zealand Financial Markets Authority (FMA) added riscoin.com to its official warning blacklist, citing unregistered entity, market manipulation, and fraud.","source":"BehindMLM / TradersUnion","source_url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/"},{"date":"2025-11-10","event":"New Zealand FMA issued a formal public warning against League of Seagull / Riscoin.","source":"BehindMLM","source_url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/"},{"date":"2025-11-19","event":"Australian Securities and Investments Commission (ASIC) added riscoin221.com to its Investor Alert List, warning the business was operating unlicensed in Australia.","source":"BehindMLM","source_url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/"},{"date":"2026-02-12","event":"Philippine SEC issued initial public advisories warning investors against League of Seagull Ltd. and Riscoin.","source":"BehindMLM","source_url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/"},{"date":"2026-05-13","event":"Riscoin platform allegedly set withdrawal fees to 99.8 percent, effectively blocking all investor redemptions — a collapse indicator consistent with Ponzi exit mechanics.","source":"BehindMLM","source_url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/"},{"date":"2026-05-14","event":"Philippine SEC Enforcement and Investor Protection Department issued a cease-and-desist order against Riscoin, Riscoin Exchange, Riscoin Trading, League of Seagull Ltd., and Seagull Alliance for operating an unregistered Ponzi-like investment scheme.","source":"Inquirer Business / BitPinas","source_url":"https://business.inquirer.net/591797/sec-shuts-riscoin-over-alleged-crypto-scam"}],"sources_used":[{"url":"https://bitpinas.com/regulation/sec-flags-riscoin/","name":"SEC Flags Riscoin Operator as Unregistered Investment Scheme — BitPinas","type":"news_article","archive_url":"http://web.archive.org/web/20260314102838/https://bitpinas.com/regulation/sec-flags-riscoin/","credibility":2,"archive_timestamp":"2026-03-14T10:28:38+00:00"},{"url":"https://business.inquirer.net/591797/sec-shuts-riscoin-over-alleged-crypto-scam","name":"SEC shuts Riscoin over alleged crypto scam — Inquirer Business","type":"news_article","archive_url":"http://web.archive.org/web/20260720141535/https://business.inquirer.net/591797/sec-shuts-riscoin-over-alleged-crypto-scam","credibility":2,"archive_timestamp":"2026-07-20T14:15:35+00:00"},{"url":"https://coinnewsbyte.com/regulation/sec-warns-against-league-of-seagull-ltd-linked-to-riscoin-scheme/","name":"SEC Warns Against League of Seagull Ltd. Linked to Riscoin Scheme — CoinNewsByte","type":"news_article","archive_url":"https://web.archive.org/web/20260725043419/https://coinnewsbyte.com/regulation/sec-warns-against-league-of-seagull-ltd-linked-to-riscoin-scheme/","credibility":2,"archive_timestamp":"2026-07-25T04:34:19+00:00"},{"url":"https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","name":"League of Seagull Review: Riscoin signals 'click a button' Ponzi — BehindMLM","type":"research","archive_url":"https://web.archive.org/web/20260725191750/https://behindmlm.com/companies/click-a-button-app-ponzis/league-of-seagull-review-riscoin-signals-click-a-button-ponzi/","credibility":2,"archive_timestamp":"2026-07-25T19:17:50+00:00"},{"url":"https://bitpinas.com/feature/philippines-sec-investment-watchlist/","name":"Philippine SEC Investment Scam Watchlist — BitPinas","type":"news_article","archive_url":"http://web.archive.org/web/20260619035440/https://bitpinas.com/feature/philippines-sec-investment-watchlist/","credibility":2,"archive_timestamp":"2026-06-19T03:54:40+00:00"},{"url":"https://coingeek.com/philippine-sec-cracks-down-on-unregistered-crypto-platforms/","name":"Philippine SEC cracks down on unregistered crypto platforms — CoinGeek","type":"news_article","archive_url":"http://web.archive.org/web/20250910052243/https://coingeek.com/philippine-sec-cracks-down-on-unregistered-crypto-platforms/","credibility":2,"archive_timestamp":"2025-09-10T05:22:43+00:00"},{"url":"https://www.pna.gov.ph/articles/1272829","name":"SEC-Butuan warns public on 3 investment scams in Caraga Region — Philippine News Agency","type":"news_article","archive_url":null,"credibility":2,"archive_error":"forbiddenaccess","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://tradersunion.com/scam-or-safe/riscoin-review/","name":"Is Riscoin a Safe or Scam? (May 2026) — TradersUnion","type":"research","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-code-investigator","created_at":"2026-05-25T18:39:28.456446+00:00","updated_at":"2026-07-25T19:53:45.838948+00:00"}}