SEC Issues Fraud Alert on CMTrading, Cautions Nigerians Against Unregistered Trading Platforms
The Securities and Exchange Commission (SEC) of Nigeria has issued a strong warning to the public regarding CMTrading, a cryptocurrency and commodities trading platform, over alleged fraudulent activities and unlicensed operations within the Nigerian capital market.
In a press statement signed by SEC’s management, the Commission confirmed that CMTrading is NOT registered to operate in any form in Nigeria’s financial market. The warning highlights the growing concerns about the proliferation of unregistered trading platforms and Ponzi schemes targeting Nigerian investors.
“The Commission hereby informs the public that 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 statement read.
False Regulatory Claims and Dubious Affiliations
CMTrading reportedly 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 has dismissed these claims as irrelevant and misleading, warning that foreign licenses do not authorise operations within Nigeria without local registration and compliance.
Use of Cloned Media Content to Deceive Investors
A major concern raised by the SEC is the platform’s deceptive marketing tactics. CMTrading has allegedly used cloned websites and logos of prominent media houses, including Punch Newspaper, Vanguard, BBC, Channels TV, and Arise Television, to build credibility and attract unsuspecting investors.
“It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers,” the SEC stated.
These tactics are designed to mislead the public, leveraging fake endorsements and familiar brands to gain trust and drive investments.
Signs of a Ponzi Scheme
According to SEC investigations, CMTrading exhibits clear indicators of a Ponzi scheme, including
- Promises of unusually high returns
- Dependence on referral systems to sustain payouts
- Use of fake or cloned websites for user onboarding and transactions
The SEC emphasised that such schemes are unsustainable and illegal, warning that victims are likely to suffer financial losses.
“Any person who invests in CMTrading or does business with its representatives does so at his or her own risk,” the Commission cautioned.
Public Advisory from the SEC
In light of its findings, the SEC has advised Nigerians to:
- Avoid investing with CMTrading
- Verify the registration status of any investment platform via the SEC website
- Report suspicious platforms or schemes to regulatory authorities
The warning is part of the Commission’s broader campaign to protect investors, promote financial literacy, and ensure that all capital market activities are conducted within the bounds of Nigerian law.
Final Thoughts
The SEC’s latest advisory against CMTrading is a crucial reminder to Nigerian investors to exercise due diligence before committing funds to any online platform. As online trading and crypto platforms continue to grow, the need for transparency, regulatory oversight, and public awareness has never been more urgent.
