The Securities and Exchange Commission (SEC) has issued a strong public warning against CMTrading, a cryptocurrency and commodities trading platform, for operating illegally and engaging in suspected fraudulent schemes targeting Nigerian investors. In a press statement signed by its management, the Commission made it clear that CMTrading is not registered to solicit investments from the Nigerian public or to operate in any form within the country’s capital market.
The platform, which presents itself as a legitimate trading outlet, claims affiliation with GCMT South Africa Pty Ltd. It also states that it is licensed by the Financial Sector Conduct Authority of South Africa and the Financial Services Authority of Seychelles. However, the SEC clarified that these claims do not grant CMTrading the legal right to operate in Nigeria. The Commission emphasized that regardless of its affiliations abroad, CMTrading lacks the necessary authorization to conduct investment-related activities within Nigeria’s jurisdiction.
More concerning are the deceptive marketing strategies employed by the platform. According to the SEC, CMTrading uses cloned websites of respected Nigerian and international media outlets including Punch, Vanguard, BBC, Channels Television, and Arise Television. By replicating the identities of these well-known news organizations, CMTrading presents fake endorsements and fabricates media coverage to lure unsuspecting Nigerians into believing the platform is credible. It also circulates falsified videos and photographs of prominent Nigerian personalities across social media platforms, using their images and voices in manipulated content that falsely suggests endorsement of CMTrading’s services. The promise of quick, high returns is a central feature of these promotions.
SEC investigations further revealed that the operational model of CMTrading exhibits classic signs of a Ponzi scheme. The platform promises unusually high and unsustainable returns on investment and depends heavily on a referral system to continue payouts. This structure, according to the Commission, is not only deceptive but also unsustainable and places investors at significant financial risk. The Commission warned that individuals who choose to interact with CMTrading or its representatives do so entirely at their own risk, as they are not protected under the Nigerian capital market regulatory framework.
The SEC has continued to urge Nigerians to be vigilant and exercise extreme caution when dealing with platforms that offer unrealistic investment returns or demand referrals to earn profits. The Commission stressed that before engaging with any investment scheme, the public must verify the platform’s registration status with the SEC. This can be done through the Commission’s official websites where records of registered fintech operators and licensed capital market participants are made publicly available. These platforms are intended to protect Nigerian investors from being misled by unlicensed and fraudulent operators.
Reaffirming its mandate, the SEC emphasized its commitment to safeguarding the interests of the investing public. It assured that efforts are ongoing to clamp down on unregistered entities that exploit regulatory gaps to defraud Nigerians. The Commission encouraged the public to report suspicious platforms and activities to help curb the growing threat of investment scams in the country.
CMTrading’s ongoing activities, according to the SEC, pose a direct threat to investor trust and financial security in the Nigerian capital market. The Commission therefore reiterated that Nigerians should avoid any engagement with the platform, as regulatory authorities will not be able to offer recourse for any losses incurred through dealings with such an unlicensed entity.
