*The Securities and Exchange Commission says CMTrading, a聽聽 cryptocurrency and commodities trading platform, has cloned Web sites of some reputable media houses in Nigeria, to attract unsuspecting investors

Isola Moses | 绿帽献妻

Following concerns some fraudulent activities in the Nigerian Capital market, the Securities and Exchange Commission (SEC) has cautioned the investing public against the cryptocurrency and commodities trading platform, CMTrading.

SEC, which notified the Nigerian public in a statement at the weekend, said the platform reportedly claims affiliation with GCMT South Africa Pty Limited.

The platform also claimed it was licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles as “a securities dealer”.

Besides, the market regulatory Commission stated the cryptocurrency and commodities trading platform cloned Web sites of reputable media houses in Nigeria to attract unsuspecting victims.

These, SEC stated, include Channels Television, Punch Newspaper, Vanguard Newspaper, BBC and Arise Television, to attract unsuspecting victims.

It further noted: 鈥淭he platform uses cloned websites of reputable media houses such as the Punch Newspaper, Vanguard Newspaper, BBC, Channels Television and Arise Television to attract unsuspecting victims.

“It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers.”

According to SEC, CMTrading was not registered to solicit investments from the public or operate in any capacity within the Nigerian Capital market.

The regulatory Commission said: 鈥淭he Commission hereby informs the public that the CMTRADING is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market.”

SEC disclosed its investigations revealed that CMTrading鈥檚 mode of operation bore “classic signs of a Ponzi scheme”.

SEC as well alleged the platform鈥檚 activities included the promise of unusually high returns, a heavy reliance on a referral system to sustain payouts, and the use of cloned Web sites for subscribers and investors alike.

The Commission, therefore, urged Nigerians to be cautious about investing with CMTrading.

It also warned that any person who engages with the entity or its representatives does so at his or her own risk.

The Commission further said in order to protect investors from fraud, it聽 emphasised the importance of checking the registration status of any investment platform through its official verification portals.

It urged the public to use these official verification portals:聽 https://home.sec.gov.ng/fintech-and-innovation-hub-registered-fintech-operators, and https://www.sec.gov.ng/cmos.