The Securities and Exchange Commission (SEC) Nigeria has cautioned Nigerians against investing in CMTrading, an online platform that claims to be offering cryptocurrency and commodities trading services.
In a statement published on its official website, the commission stated that its attention had been drawn to the activities of CMTrading, which presented itself as a licensed trading platform.
According to the capital market regulator, CMTrading also claims to operate under the name GCMT South Africa Pty Ltd, licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and as a securities dealer by the Financial Services Authority (FSA) of Seychelles.
It stated that the company allegedly used cloned websites of reputable media organisations, including The Punch, Vanguard, BBC, Channels Television and Arise TV, to lure unsuspecting victims, while also circulating doctored videos and images of prominent Nigerians on social media, promising financial rewards to subscribers.
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The SEC warns: “The Commission hereby informs the public that CMTrading is not registered by the Commission either to solicit investments from the public or to operate in any capacity within the Nigerian capital market.”
The commission stated that investigations by it showed that CMTrading’s operations bore the traits of a fraudulent Ponzi scheme, including promises of unusually high returns, reliance on a referral system for payouts, and persistent demands for users to fund their accounts.
As a result of its findings on the platform, SEC warned the public to exercise extreme caution and avoid investing in it, stressing that anyone who engages with CMTrading does so at their own risk.
The Commission also reminded potential investors to always verify the registration status of any investment platform before making financial commitments on its official communication portals as reflected on its website.
