The Nigeria Securities and Exchange Commission issued an investor alert on CMTRADING, an online platform marketing cryptocurrency and commodities trading, warning that it is not registered by the Commission to solicit investments from the public or operate in any capacity in Nigeria’s capital market and that its activities show typical indicators of a fraudulent Ponzi scheme. CMTRADING claims to be licensed as GCMT SOUTH AFRICA PTY LTD by South Africa’s Financial Sector Conduct Authority and as a securities dealer by the Financial Services Authority of Seychelles. The Commission alleged the platform uses cloned websites of established media organisations and cloned videos and images of prominent Nigerians on social media to attract subscribers with promises of monetary benefits. Its investigations flagged promises of unusually high returns, heavy reliance on a referral system to sustain payouts, and persistent requests for subscribers to fund accounts, and cautioned that anyone dealing with the platform or its representatives does so at their own risk. The SEC also reminded investors to verify the registration status of investment platforms via its dedicated portal for registered fintech operators and the CMOs portal on its website before transacting.

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