- The Philippines’ SEC has issued a legal notice preventing Manny Pacquiao-endorsed XM Group from continuing its operations.
- The agency’s investigation found that the entity engaged in unregulated securities sales.
- The XM platform offers derivatives, foreign exchange shares, and crypto trading.
The Republic of the Philippines’ Securities and Exchange Commission (SEC) has ordered a halt to the activities of the trading platform backed by boxing legend Manny Pacquiao on Friday. According to the local news portal, the Manila Bulletin, the financial watchdog’s probe found that the XM Group has been selling unregistered securities, including derivatives, foreign exchange shares, and cryptocurrencies.
The SEC’s Cease-and-Desist on XM Group
The SEC enforced its move via a Cease-and-Desist Order (CDO) against Trading Point Holdings Ltd., the parent company of XM, XM Global Limited, and XM Philippines. The agency also told the group to stop promoting its products and services online. These include advertisements on websites, mobile apps, and social media channels.
A “cease and desist” is a formal demand from a court or government agency. It instructs the recipient of the order to stop engaging in a specific activity.
The regulator explained that XM has established linkages with local banks and e-wallets, clearly indicating its intention to make its investment scheme available to Filipinos. It emphasized that the group has violated Sections 8 and 28 of the Philippines’ Securities Regulation Code.
“The issuance of a CDO is therefore warranted for the protection of the investing public, as it operates as a fraud on investors,” said the SEC. In addition, the institution barred the group from “transferring, disposing, or conveying its assets” with banks and other financial entities to prevent possible losses to investors.
The SEC’s decision is tied to its earlier crackdown on unregistered online investment platforms in 2024, including crypto exchanges like Binance, OKX, Bybit, KuCoin, Kraken, MEXC, and Bitget.
Pacquiao, an eight-division boxing world champion and former senator in the Philippines, has been notably active in the crypto scene since 2022. During that time, he launched a non-fungible token (NFT) venture with Web3 wallet NFT One and START.
Based on the press release of the parties, START tapped Pacquiao as honorary chair due to his business acumen, untarnished reputation, and global influence. Meanwhile, the boxer urged his fellow athletes to harness the advantages of crypto, particularly NFTs, to be part of the next stage of evolution in finance.
Pacquiao has already announced his retirement from boxing but continues to participate in occasional exhibition bouts. The 47-year-old athlete’s camp is exploring a probable return in 2026, with negotiations underway for a potential match with Rolly Romero for the WBA welterweight title.
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