Dear Clients,

We are witnessing constant progress in the legal regulation of cryptocurrencies, which creates additional trust among crypto users. People who have not used cryptocurrency before are starting to buy it. The reduction in Bitcoin mining also increases its price. This situation creates a feeling among people that they are missing out on something big if they do not join the crypto community. The heightened nervousness, resembling the gold rush, is being exploited by fraudsters. Therefore, be cautious; do not invest until you have verified.

In the beginning, the case of Jubilee Ace/Jenco, GTR, and 3Key Lyra offered an alleged unique and unparalleled arbitration system that promised significant profits, but it ended in collapse and massive damage to investors. So, be cautious; before investing, ask someone who knows. Ask us, for example.

Below, we are publishing another part of the criminal report that we have written and submitted on behalf of the victims of this alleged scam.

… Arbitrage trading, as promoted by the perpetrators, involves the trade of goods with maximum and secure gains and minimal risk. The process of arbitrage trading occurs by purchasing the goods in Market A at the lowest price and then selling the same goods in Market B at a higher price, thereby generating a profit representing the price difference between Market A and Market B. Arbitrage trading operates 24/7 and claims to be 100% automated and digitalized. The software first collects and analyzes all relevant data to identify the most favorable markets worldwide, where the traded goods are available at the lowest prices, and sells them in markets where they are priced higher, aiming to maximize profits.

It was claimed and presented by the perpetrators that the system is perfect, always executing actions that yield the highest profit, guaranteeing secure returns. During the presentations, the perpetrators would demonstrate the precise functioning of the system by engaging in live trading to showcase the speed and accuracy of the entire system and the potential earnings. However, there is reasonable suspicion that the perpetrators faked live trading, and the profits generated were fictitious, solely aimed at gaining the victims’ trust and persuading them to invest their money. The investment options presented included commodities, sports betting, and cryptocurrencies. Commodities encompassed various economic sectors such as raw materials, energy, and agriculture. The victims were given the opportunity to choose the trading category via the digital platform after depositing funds and creating their accounts. Promoters and top managers within the Jubilee Group companies showcased their enormous earnings to potential investors as a means to encourage them to make financial contributions.

The companies operated on the principle of Multilevel Marketing, utilizing a pyramid organizational structure. Under this system, if an investor, referred to as Investor A, recruits new individuals to become investors and clients, denoted as Investors B and C, Investor A receives a commission. If Clients B and C further recruit new clients, Investor A earns additional profits. Only those at the top of the pyramid derive profits from each recruited member, while the company deceives individuals by falsely claiming that anyone who recruits new clients will profit and become wealthy. Promoters and top managers within the companies showcased their alleged substantial earnings to potential investors with the intention of persuading them to invest, despite being aware that it was all part of an elaborate scheme.

The company’s operations relied on collecting capital from the victims – investors and subsequently using it for alleged arbitrage trading. Investors were offered various “subscription programs” in which the profit promised by the company depended on the amount they invested. The potential returns that investors could expect varied, ranging from 4% to 15% per month, depending on their investments.

After the victims opened an account and deposited money in the company, the funds would go directly to the company’s account. The victims had their own personal accounts, but they could not use them. The company allegedly traded with that money using its own account on behalf of the victims. In the trading markets, the company operated solely in its own name and for its own account, while the victims were unable to track the actual trading as it did not exist. Through their personal accounts, victims saw alleged profits that the company would make on their behalf, but they were unable to utilize or transfer these alleged profits to another account.

The company’s capital came from the victims’ investments, who then became clients and users and allegedly increased through arbitrage trading. Around 35% of the profits from arbitrage trading are claimed to go to the company, while 4-15% is promised as trading profit to the clients based on the amount invested. In reality, the company’s capital only grew through new investors, and a portion of the earnings was initially paid out to investors to deceive a larger number of people and entice the victims to invest further.

To be continued…

Zoran Miljakovic

Attorney at Law