THE Securities and Exchange Commission (SEC) has warned the public against putting money in two more investment-taking entities, which have not secured a license to offer shares.
In separate warnings, the regulatory body identified the entities as Gemini Trust Co., LLC and Seven Co.
The advisory reported that Gemini Trust has been enticing the public through its website by offering its product “Gemini Derivative.”
According to the SEC, derivatives are a form of securities defined under Section 3 of the Securities Regulation Code (SRC).
“[The company’s] lack of prior registration with the commission makes their activities of offering and/or selling securities in the form of derivatives illegal in violation of the provisions of the SRC,” the regulator said.
The entity was also charged by the US SEC due to its unregistered investment scheme through the entity’s Gemini Earn programs, which constitute an offer and sale of securities that require prior registration.
Additionally, it was also sued by the US Commodity Futures Trading Commission for “allegedly deceiving regulators by providing false information about the exchange and futures contracts during meetings with the regulators as part of an attempt to secure approval for Bitcoin futures in 2017.”
Gemini Trust is a US-based cryptocurrency platform founded by Facebook co-originators Tyler and Cameron Winklevoss.
Meanwhile, the commission also warned against Seven Co, which is enticing the public through social media under the investment schemes “Seven Co Investments & Online Paluwagan” and “Seven Co Profit Sharing & Online Paluwagan.”
The entity promises investors a 20% interest rate on investment for 10 days and 30% for 15 days.
The SEC said that the tactic has the characteristics of a Ponzi scheme where money from new investors is used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers.
In its review, the commission stated that both entities are not authorized to solicit investments from the public. — Adrian H. Halili