SEC Warns Nigerians Against Investing in AfriquantumX Platform

The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in AfriquantumX, an online investment platform that claims to trade in cryptocurrency and stocks, warning that the company is not registered to operate within the country’s capital market.

In a statement published on its official website, the Commission said it had observed the activities of AfriquantumX and found that the platform exhibits features typically associated with fraudulent Ponzi schemes.

According to the notice: “The attention of the Securities and Exchange Commission (SEC) has been drawn to the activities of AfriquantumX, which holds itself out as an investment platform trading on and selling cryptocurrency and stocks to investors in Nigeria.

The Commission hereby informs the public that AfriquantumX is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market.”

SEC said investigations revealed that AfriquantumX has been actively promoted on social media platforms and online forums, targeting unsuspecting investors with promises of high returns.

The Commission therefore advised the investing public to exercise extreme caution, warning that any individual who transacts with the platform does so at their own risk.

“Investigations have revealed that AfriquantumX’s operations exhibit characteristics commonly associated with fraudulent Ponzi schemes. Accordingly, the public is advised to be cautious about investing with the said AfriquantumX, as any person who places investments or engages with the entity does so at his or her own risk,” the notice read.

SEC further emphasised that engaging with unregistered and unregulated investment entities exposes investors to significant financial losses and potential fraud.

The Commission urged Nigerians to always verify the registration status of any company or individual offering investment opportunities through its official portal – www.sec.gov.ng/cmos -before committing funds.

It reiterated: “Transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risk, including fraud and the total loss of investment. The investing public is therefore reminded of the need to verify the registration status of companies and entities before doing business with them.”

The latest advisory underscores the regulator’s ongoing efforts to curb the rising wave of online investment scams targeting Nigerians, many of which operate under the guise of cryptocurrency and forex trading schemes.

SEC has in recent months intensified its monitoring of online financial platforms, repeatedly warning that entities not registered with the Commission are operating illegally and outside the framework of Nigeria’s investment laws.