The Securities and Exchange Commission (SEC) has issued a public warning against CMTrading, a cryptocurrency and commodities trading platform, over concerns of fraudulent activities in Nigeria’s capital market.
In a press statement signed by its management, the SEC disclosed that CMTrading is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market.
“The Commission hereby informs the public that the CMTRADING is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market,” the statement read
The platform reportedly claims affiliation with GCMT South Africa Pty Ltd, allegedly licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles as a securities dealer.
Use of cloned media content to lure victims
The Commission also raised alarm over CMTrading’s marketing strategies, warning that the platform uses cloned websites of reputable media houses such as the Punch Newspaper, Vanguard Newspaper, BBC, Channels Television and Arise Television to attract unsuspecting victims.
“The platform uses cloned websites of reputable media houses such as the Punch Newspaper, Vanguard Newspaper, BBC, Channels Television and Arise Television to attract unsuspecting victims. It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers,” they stated
Additionally, the platform has been found to post cloned videos and images of notable Nigerians on social media to mislead the public with false promises of financial rewards.
Indicators of a Ponzi scheme
Investigations by SEC revealed that CMTrading’s mode of operation bears classic signs of a Ponzi scheme. According to the Commission, the platform’s activities include the promise of unusually high returns, heavy reliance on a referral system to sustain payouts and use of fake websites for subscribers and investments.
It therefore advised the Nigerian public to be cautious about investing with CMTRADING, as any person who engages with the entity or its representatives does so at his/her own risk.
How to verify licensed operators
To help protect investors from fraud, SEC emphasized the importance of checking the registration status of any investment platform through its official verification portals.
It urged the public to use these official verification portals
https://home.sec.gov.ng/fintech-and-innovation-hub-registered-fintech-operators
What you should know
Nairametrics reported last week that the SEC had also issued a warning against an unregistered crypto project known as Punisher Coin ($PUN), describing it as a meme coin with no intrinsic value or real-world use.
The coin was being marketed through unauthorized presales and aggressive online promotions, targeting Nigerian investors with misleading claims.
According to the Commission, the project was not approved or licensed, and its promoters were not registered to operate within the Nigerian capital market.
The SEC noted that Punisher Coin fits the typical pattern of a pump-and-dump scheme, where investors are lured in with hype and left with worthless assets once the price crashes.
