The Securities and Exchange Commission (SEC) said the public should exercise caution when dealing with three groups which have not secured the necessary licenses to offer securities for sale.
The SEC identified these as Jams Mart, Solmax Global Ltd. and Igniter 100 and BitAccelerate.
SEC said Jams Mart’s franchise investment program promises up to 300 percent return within one year.
SEC said Solmax Global and Igniter 100 have been enticing the public to invest in its initial coin offering (ICO) through its Filipino independent marketing partners (IMP) involving a cryptocurrency called ‘Equity Token’ or ‘i100’ where an investor could get their returns if they could recruit other investors in the scheme.
It added Solmax and Igniter 100 also provides other income opportunities for investors, such as ranking bonuses, referral commissions, binary bonuses, matching bonuses, global pool bonuses, as well as car, travel, and gadget incentives, among others.
The SEC warned that Solmax and Igniter 100, despite claiming legitimacy abroad, may be operating a Ponzi scheme, wherein early-stage investors are likely to be paid out from investments of new investors instead of from the sale of legitimate products or services.
BitAccelerate, which also operates under the names Bitaccelerateproject.com, BA, and BitAccelerator, claims to be operating a crowdfunding international platform that provides investors both long-term active and passive income.
“Investors could generate up to 350 percent maximum passive income from their investments, or about 2 percent to 8 percent daily profit,” it added.
The SEC reminded the public that cryptocurrencies are very volatile and involve a higher degree of risk, making any promise of lucrative returns truly ambiguous.