The Securities and Exchange Commission (SEC) has issued a strong warning to the public against investing in CMTrading, a cryptocurrency and commodities trading platform it described as fraudulent and unregistered in Nigeria.
In a statement released on Saturday, the Commission said CMTrading falsely claims affiliation with GCMT South Africa Pty Ltd, which it alleges is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. However, the SEC stressed that CMTrading is not registered to operate or solicit investments within the Nigerian capital market.
“CMTrading is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market,” the SEC stated.
According to the Commission, CMTrading uses cloned websites of major media outlets including Channels Television, Punch, Vanguard, BBC, and Arise Television to mislead and lure unsuspecting investors. It also disseminates doctored videos and images of prominent Nigerians on social media, falsely promising monetary rewards to potential subscribers.
The SEC said its investigations revealed that CMTrading exhibits classic characteristics of a Ponzi scheme, such as promises of unusually high returns, dependence on a referral system to sustain payouts, and use of fake investment portals.
