Based on its website, the Xian Coin or XNC is a centralized digital currency powered by the Etherium Blockchain that is exclusively traded by its coin holders.
XCN claims that its primary function is to create an unregulated and untraceable financial payment system that will power transactions and businesses across geographical spheres.
Under the scheme, investors can exchange their coins to Xian Coin, Colombian Peso, Mexican Peso, Brazilian Real, Peruvian Sol and Philippine Peso.
According to the SEC, Xian Coin is not registered neither as a corporation or as a partnership. As such, it is not authorized to solicit investments from the public.
Apart from this, the Xian coin is not a registered virtual asset service provider with the Bangko Sentral ng Pilipinas. It is nether registered with recognized cryptocurrency exchanges.
SEC said the “scheme employed by Xian Coins clearly shows indication of a possible Ponzi scheme where monies from new investors are used in paying fake profits to prior investors and is designed mainly to favor its top recruiters and prior risk takers.”
The SEC cited the “promise of extravagant returns by Xian Gaza in his videos where he declared to be the sole issuer of XCN.
“Xian Coin is heavily promoted by Gaza in his Facebook page indicating the alleged total amount of investments per month from investors,” the SEC said.