The Securities and Exchange Commission (SEC) has warned the public against the cryptocurrency and commodities trading platform, CMTrading.
A statement by the Commission on Saturday said 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.
The Commission also said the cryptocurrency and commodities trading platform, cloned websites of reputable media houses such as Channels Television, Punch Newspaper, Vanguard Newspaper, BBC and Arise Television, to attract unsuspecting victims.
The SEC said the alert was necessary over concerns of fraudulent activities in Nigeria’s capital market.
“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,” it stated.
The Commission disclosed that CMTrading was not registered 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.
Additionally, investigations by the SEC revealed that CMTrading’s mode of operation bore classic signs of a Ponzi scheme.
According to the Commission, the platform’s activities included the promise of unusually high returns, a heavy reliance on a referral system to sustain payouts, and the 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 their own risk.
To help protect investors from fraud, the SEC emphasised the importance of checking the registration status of any investment platform through its (SEC’s) 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, and https://www.sec.gov.ng/cmos.
Last week, the SEC 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 SEC noted that Punisher Coin fit 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.
The coin was being marketed through unauthorised 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.
