The Securities and Exchange Commission (SEC) has issued a stern warning to the Nigerian public against engaging with the cryptocurrency and commodities trading platform, CMTrading, citing serious concerns over fraudulent activities in the capital market.
In a statement released on Saturday, the SEC disclosed that CMTrading falsely claims affiliation with GCMT South Africa Pty Ltd, purportedly licensed by South Africa’s Financial Sector Conduct Authority (FSCA) and the Seychelles Financial Services Authority (FSA) as a securities dealer.
However, the Commission clarified that CMTrading is not registered or authorised to operate within Nigeria’s capital market in any capacity.
The SEC further revealed that the platform employs sophisticated tactics to lure unsuspecting investors, including cloning websites of reputable Nigerian and international media outlets such as Channels Television, Punch Newspaper, Vanguard Newspaper, BBC, and Arise Television. It also circulates fake videos and images of prominent Nigerians on social media, enticing users with false promises of substantial monetary returns.
“The Commission hereby informs the public that CMTrading is NOT REGISTERED by the SEC to solicit investments or conduct any business within the Nigerian capital market,” the statement emphasized.
Investigations by the SEC suggest that CMTrading’s operations exhibit classic signs of a Ponzi scheme, characterized by promises of unusually high returns, reliance on referral networks to sustain payouts, and the use of fraudulent websites to collect investments.
The Commission urged Nigerians to exercise extreme caution, warning that anyone dealing with CMTrading or its agents does so at their own risk. To safeguard investments, the SEC strongly advised verifying the registration status of any platform through its official online portals:
Fintech & Innovation Hub Registered Operators, Capital Market Operators
This announcement follows a recent SEC alert against Punisher Coin ($PUN), a meme-based cryptocurrency project flagged as a likely pump-and-dump scheme.
The coin was aggressively marketed via unauthorized presales and online promotions targeting Nigerian investors, despite having no intrinsic value or regulatory approval.
The SEC reaffirmed its commitment to protecting Nigerian investors from scams and unregulated schemes that threaten the integrity of the nation’s financial markets.
