The Securities and Exchange Commission (SEC) has raised an alert on an online platform, CMTRADING, warning the public about its illegal activities in Nigeria. The platform, which promotes itself as a cryptocurrency and commodities trading company, has been flagged for operating without registration or approval from the Nigerian capital market regulator.
CMTRADING claims to be licensed by the Financial Sector Conduct Authority (FSCA) in South Africa under the name GCMT SOUTH AFRICA PTY LTD and also by the Financial Services Authority (FSA) in Seychelles. However, the SEC has confirmed that these claims do not permit the platform to operate in Nigeria or solicit investments from Nigerians.
The Commission stated, “CMTRADING is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market.”
Investigations reveal that CMTRADING has been using fake websites and cloned media content to gain public trust. The platform reportedly copies the branding of trusted media outlets like Punch, Vanguard, BBC, Channels Television, and Arise Television. They also use altered videos and images of well-known Nigerians to lure people with fake investment promises.
SEC described CMTRADING’s methods as typical signs of a Ponzi scheme, including offers of very high returns, a strong focus on referrals, and constant pressure to fund trading accounts.
The public is advised to verify the registration status of any cryptocurrency investment or online trading platform through the Commission’s official portal at https://home.sec.gov.ng.
“Anyone who chooses to invest or interact with CMTRADING does so at their own risk,” the SEC warned.
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