SEC warns Nigerians against investing in CMTrading

The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in CMTrading, an online platform that claims to offer cryptocurrency and commodities trading services.

In a statement published on its official website, the capital market regulator said its attention had been drawn to the activities of CMTrading, which presents itself as a licensed trading platform.

According to SEC, CMTrading 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.

The platform allegedly uses cloned websites of reputable media organisations, including Punch, Vanguard, BBC, Channels Television and Arise TV, to lure unsuspecting victims. It also circulates doctored videos and images of prominent Nigerians on social media, promising financial rewards to subscribers.

“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,” SEC stated.

Investigations by the regulator revealed that CMTrading’s operations bear the hallmarks 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.

Consequently, SEC warned the public to exercise extreme caution and avoid investing in the platform, stressing that anyone who chooses to engage 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. This can be done via SEC’s official portals:

https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators www.sec.gov.ng/cmos