Chaka Technologies has responded to news of the Securities and Exchange Commission restraining it and its promoters from advertising or offering for sale shares, stock or other securities of companies or other entities.
The fintech startup said that investor funds were placed by a duly licensed entity and remain safe through Citi Investments, in a bid to reassure investors after the SEC granted an interim order to restrict Chaka operations yesterday.
This was disclosed in a statement signed by Tosin Osibodu, Co-founder & CEO, Chaka Technologies.
In the statement titled “Regulatory Update”, Chaka said it only learnt about the SEC’s order on Saturday and will continue to be a regulated SEC broker.
The statement read in part, “We only learned about SEC’s position today and while we await receiving the formal order from SEC,”
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“Please note that your investments were placed by a duly licensed entity and remain safe through Citi Investments (using the Chaka platform), and will continue to be custodied by an SEC-regulated broker. We do not advertise, solicit, or offer securities of companies as alleged.”
The Company said since operations started in September 2019, that is it has “been transparent about our regulatory status, leveraging strategic partnerships with registered brokers in the U.S and in Nigeria, specifically Citi Investment Capital Ltd, which is regulated by the SEC.”
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Chaka said that is working to resolve the situation with the SEC and that further information on the matter will be made available by Monday.
“Following the SEC statement, our legal and operations teams are working to accelerate a solution. Further updates will be provided by Monday,” the statement added.
What you should know
- Nairametrics reported earlier that the SEC announced it will restrain fintech startup, Chaka Technologies Limited, and its promoters from advertising or offering for sale shares, stock or other securities of companies or other entities.
- SEC said the interim order applies to all Chaka platforms, citing that the startup carried out operations outside the regulatory purview of the Commission and without requisite registration.
