The Securities and Exchange Commission (SEC) has issued a warning against investing in OTCJKE/OTC Automated Trading platform/JKE International Ltd. which represents itself as a high-frequency trading encryption platform .
According to the SEC, the entity entices investors to invest with the promise of three to eight percent daily earnings withdrawable anytime through a crypto wallet or a GCash account.
OTCJKE likewise claims to be a cryptocurrency subsidiary of the British JKE group and is one of the companies that supports the Ukraine Crisis.
The SEC investigation showed that upon downloading the OTCJKE application, individuals would be required to create and register an account, after which they would be asked to deposit money in US dollars through binance or GCash.
Once the money is deposited through the application, the individual may now start using the mining bot to earn and their income would depend on the amount of money deposited as shown in the table posted in their Facebook group.
The member may also earn income commission by getting “team members” or recruiting others to invest.
The SEC said the investment scheme of OTCJKE/OTC Automated Trading platform/JKE International Limited has the characteristics of a Ponzi scheme because of the promise of an exorbitant rate of return with little to no risk at all to the investors.
It added that the transactions entered by the entity through its online trading platform are considered securities in the form of “investment contracts” which must be registered with the SEC.
The OTCJKE/OTC Automated Trading platform/JKE International Limited is not registered as a corporation or partnership, and is likewise not authorized to solicit investments from the public.
“Hence, the public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the SEC said.