Nigeria’s Securities and Exchange Commission (SEC) has issued a warning to the public regarding the CMTRADING trading platform. The platform is unregistered and is not suitable for providing transactions or financial services to residents in the country, according to regulators.
In its statement, the committee reportedly reports that the platform is affiliated with GCMT South Africa Pty Ltd, which is said to be licensed as a securities dealer by the South African Financial Conduct Authority (FSCA) and the Seychelles Financial Services Authority (FSA).
The Nigerian SEC also said the platform offering encryption and commodity trading services will clone websites for media outlets such as Punch, Vanguard and Arise Television to attract unsuspecting users.
Nigerian SEC issues warning against cmtrading
The SEC said concerns about an increase in fraudulent activity in Nigeria’s capital markets had to be wary. Aside from using cloned versions of these websites to attract users, the committee said it uses fake videos of prominent Nigerians who praise the platform on social media, and promises financial benefits to subscribers.
The SEC said the platform is not registered to seek investment from the public or operate in any capacity within the Nigerian capital market.
“The Committee will this notify the public that CMTRADING is not registered by the Committee.
Additionally, the SEC said the investigation showed that the operating mode of CMTRADING showed signs of the Ponzi scheme. The committee highlighted that platforms typically promise unusually large revenues by Nigerian users, and noted that they also rely on the form of referral systems to maintain payments.
The agency also adopted fake website use and proof of investment, calling users to seduce investment.
The agency wants the public to be cautious
In its statement, the Nigerian SEC advised the public to be cautious about investing in cMtrading, noting that those involved in the entity or platform representative are taking risks. The agency also warned users to check the investment platform’s registration status on the official verification website, reducing the need for users to protect themselves from fraudulent factors.
I have urged to use these official verification portals: https://home.sec.gov.ng/fintech-and-invation-hub-registered-fintech-operators, and https://www.sec.gov.ng/cmos.
This is not the first warning the SEC has issued to the general public in the past few weeks. Last week, the SEC also issued a warning against an unregistered cryptographic project known as Punisher Coin ($Pun), describing it as an unrealized meme coin.
The SEC promises that the Punisher Coin fits the usual pattern of tokens related to pump and dump schemes, with investors committing to make money through hype, and that developers will pull out liquidity and leave unworthy assets after leading to token crashes.
The coin is said to have been sold through fraudulent means, and developers are using aggressive online promotions to target unsuspecting Nigerian investors.
Nigeria has been taking action against illegal operators while fighting unregistered platforms and projects. For example, the EFCC recently confirmed cases that accused some foreigners who were accused of carrying out crypto investment fraud in the country. Each foreigner was jailed for a year, and the court ordered him to pay 1 million (about $645) fines.
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