The Security and Exchange Commission (SEC), has warned stakeholders and the investing public about the activities of an illegal blockchain operator. This is part of measures aimed at safeguarding the investing public from the activities of illegal and fraudulent operators in the capital market.
In the statement, SEC, called the attention of the public to the activities of iBSmartify Nigeria, the promoters of a blockchain known as iBIedger (iBcashcryptocurrency) and InksNation.
This was disclosed in a circular, which was released by the Security and Exchange Commission on Friday, June 26, 2020, to capital market operators and the investing public.
The capital market regulator pointed out that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the commission.
SEC in the circular, stated, “The attention of the Commission has been drawn to the activities of iBSmartify Nigeria the promoters of a Blockchain known as iBledger (iBcashcryptocurrency) and InksNation.
“The general public is hereby advised that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the Commission.
“In view of the above, the general public is hereby warned that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk.”
SEC has always warned the investing public against dealing with fraudulent and unregistered investment schemes and capital market operators, especially those with bogus investment and unjustifiable return claims.
The commission, in 2019, clamped down on some Ponzi scheme operators by blocking their bank accounts and taking over the real estate properties linked to them.
Nairametrics had earlier reported how some Nigerians had incurred losses due to crypto fraud. Investors were asked to make thorough inquiries or seek the services of professional advisers before making investment decisions.
With the upsurge of interest shown by the investing public in the blockchain technology, SEC has been trying to apply stricter control measures and regulations to protect the investment and interest of the investors.