The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians against investing in CMTRADING, an online platform claiming to offer cryptocurrency and commodities trading services.
In a statement published on its official website, the capital market regulator disclosed that CMTRADING has been luring unsuspecting investors through cloned websites of reputable media organisations such as Punch, Vanguard, BBC, Channels Television and Arise TV. The platform also reportedly circulates doctored videos and images of prominent Nigerians on social media, promising unrealistic financial rewards to potential subscribers.
According to SEC, CMTRADING claims to be licensed as GCMT South Africa Pty Ltd by the Financial Sector Conduct Authority (FSCA) of South Africa and as a securities dealer by the Financial Services Authority (FSA) of Seychelles. However, the Nigerian regulator emphasised that CMTRADING is not registered with the Commission to solicit investments or operate within the country’s capital market.
“The public is hereby informed 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.
The Commission further revealed that its investigations identified several red flags typical of fraudulent Ponzi schemes, including:
Promises of unusually high returns on investments.
Heavy reliance on referral systems to sustain payouts.
Urgent and persistent demands for subscribers to fund accounts.
SEC cautioned Nigerians to exercise due diligence before investing in any platform and stressed that anyone dealing with CMTRADING or its agents does so at their own risk.
The Commission also urged investors to always verify the registration status of investment operators via its official portals:
SEC Fintech Innovation Hub
www.sec.gov.ng/cmos
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