SEC Warns Nigerians About CMTrading Cryptocurrency Platform

• SEC warned the public about CMTrading, a cryptocurrency and commodities trading platform that is not registered
• The platform allegedly imitates reputable media outlets and uses cloned content to attract victims, promising high profits
• The SEC urges caution, advising Nigerians to verify investment platforms through its official portals to avoid fraud

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market..

The Securities and Exchange Commission (SEC) has cautioned the public about CMTrading, a cryptocurrency and commodities trading platform.

The platform claims to be affiliated with GCMT South Africa Pty Ltd, which is said to be licensed as a securities dealer by the Financial Services Authority (FSA) of Seychelles and the Financial Sector Conduct Authority (FSCA) of South Africa, according to a statement released by the Commission on Saturday.

To lure unsuspecting victims, the Commission stated that the cryptocurrency and commodities trading platform replicated the websites of reputable media outlets.

Concerns over fraudulent activity in Nigeria's capital market prompted the SEC to issue the alert.

“The platform uses cloned websites of reputable media houses such as The Punch Newspaper, The 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,” the statement read.

The Commission revealed that CMTrading was not authorised to operate in any capacity within the Nigerian capital market or solicit investments from the general public.

“The SEC hereby informs the public that CMTrading is not registered by the Commission to solicit investments from the public or operate in any capacity within the Nigerian capital market,” the statement continued.

Furthermore, the SEC’s investigations showed that CMTrading’s business practices exhibited the telltale signs of a Ponzi scheme.

The Commission claims that the platform's operations included using fraudulent websites to attract users and investors, promising abnormally high profits, and relying heavily on a referral system to sustain rewards.

Because anyone who deals with CMTrading or its representatives does so at their own risk, the SEC recommended that the Nigerian public exercise caution when making investments with the company.

The SEC emphasised the importance of using its official verification portals to confirm an investment platform's registration status to help safeguard investors against fraud.

SEC flags Zugacoin, SamZuga GPT as unregistered

Legit.ng reported that the Securities and Exchange Commission (SEC) has flagged two cryptocurrencies as not registered with the commission.

The SEC warned Nigerians that ZUGACOIN, owned by Sam Zuga, with its variants such as SZCB and SZCB2, and SAMZUGA GPT, saying they are unapproved.

The commission disclosed in a new notice stating the promoters or issuers of ZUGACOIN and SAMZUGA GPT are not licensed to operate in any capacity in the Nigerian capital market, flagging the meme coins as illegal.

Source: Legit.ng