By Atoyebi Nike
The Securities and Exchange Commission (SEC) has issued a public alert cautioning Nigerians against engaging with CMTRADING, an online trading platform that claims to operate in cryptocurrency and commodities markets. According to the Commission, the entity is not registered or licensed to conduct investment business or solicit funds within Nigeria’s capital market.
In a statement released by the Commission, CMTRADING was accused of deploying deceptive tactics, including cloning the websites of trusted media outlets such as Punch, Vanguard, BBC, Channels TV, and Arise News, to lure unsuspecting investors. The platform also circulates fabricated videos and images of influential Nigerians on social media to falsely promote legitimacy and promise financial rewards.
SEC clarified that although CMTRADING claims to hold licenses under GCMT South Africa Pty Ltd from the Financial Sector Conduct Authority (FSCA) of South Africa and from the Financial Services Authority (FSA) of Seychelles, it remains unauthorized to operate in Nigeria.
Investigations by the Commission revealed that the platform exhibits red flags typical of a Ponzi scheme: promises of extraordinary profits, dependency on referrals to maintain payouts, and pressure tactics urging users to deposit funds.
“CMTRADING’s mode of operation fits the classic profile of an investment scam. Nigerians are urged to exercise extreme caution and avoid putting their money in platforms that offer unrealistic returns,” the SEC noted.
The Commission further advised the public to always verify the regulatory status of any digital investment platform before committing funds. Prospective investors can cross-check approved operators via SEC’s official Fintech and Innovation portal at https://home.sec.gov.ng or visit www.sec.gov.ng/cmos for the complete list of registered entities.
Anyone choosing to engage with CMTRADING or similar platforms does so at their own financial risk, the SEC reiterated.
