The Securities and Change Fee (SEC) has issued a public warning in opposition to CMTrading, a cryptocurrency and commodities buying and selling platform, over issues of fraudulent actions in Nigeria’s capital market.
In a press assertion signed by its administration, the SEC disclosed that CMTrading is NOT REGISTERED by the Fee both to solicit investments from the general public or function in any capability inside the Nigerian capital market.
“The Fee hereby informs the general public that the CMTRADING is NOT REGISTERED by the Fee both to solicit investments from the general public or function in any capability inside the Nigerian capital market,” the assertion learn
The platform reportedly claims affiliation with GCMT South Africa Pty Ltd, allegedly licensed by the Monetary Sector Conduct Authority (FSCA) of South Africa and the Monetary Companies Authority (FSA) of Seychelles as a securities seller.
Use of cloned media content material to lure victims
The Fee additionally raised alarm over CMTrading’s advertising and marketing methods, warning that the platform makes use of cloned web sites of respected media homes such because the Punch Newspaper, Vanguard Newspaper, BBC, Channels Tv and Come up Tv to draw unsuspecting victims.
“The platform makes use of cloned web sites of respected media homes such because the Punch Newspaper, Vanguard Newspaper, BBC, Channels Tv and Come up Tv to draw unsuspecting victims. It additionally posts cloned movies and photos of distinguished Nigerians on social media, promising financial advantages to subscribers,” they acknowledged
Moreover, the platform has been discovered to publish cloned movies and pictures of notable Nigerians on social media to mislead the general public with false guarantees of monetary rewards.
Indicators of a Ponzi scheme
Investigations by SEC revealed that CMTrading’s mode of operation bears basic indicators of a Ponzi scheme. In response to the Fee, the platform’s actions embody the promise of unusually excessive returns, heavy reliance on a referral system to maintain payouts and use of faux web sites for subscribers and investments.
It subsequently suggested the Nigerian public to be cautious about investing with CMTRADING, as any one who engages with the entity or its representatives does so at his/her personal danger.
Methods to confirm licensed operators
To assist defend traders from fraud, SEC emphasised the significance of checking the registration standing of any funding platform by its official verification portals.
It urged the general public to make use of these official verification portals
https://house.sec.gov.ng/fintech-and-innovation-hub-registered-fintech-operators
https://www.sec.gov.ng/cmos
What you need to know
Nairametrics reported final week that the SEC had additionally issued a warning in opposition to an unregistered crypto challenge often known as Punisher Coin ($PUN), describing it as a meme coin with no intrinsic worth or real-world use.
The coin was being marketed by unauthorized presales and aggressive on-line promotions, focusing on Nigerian traders with deceptive claims.
In response to the Fee, the challenge was not permitted or licensed, and its promoters weren’t registered to function inside the Nigerian capital market.
The SEC famous that Punisher Coin matches the everyday sample of a pump-and-dump scheme, the place traders are lured in with hype and left with nugatory property as soon as the worth crashes.
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