SEC issues warning against unregistered trading platform CMTrading

The Securities and Exchange Commission (SEC) of Nigeria has issued a public warning to investors about CMTrading, a cryptocurrency and commodities trading platform that is not registered to operate within the Nigerian capital market.

In an official statement released today, the SEC made it clear that CMTrading is not authorized to solicit investments or conduct any business activities in Nigeria. The Commission emphasized that the platform is not registered under its regulatory framework, making any dealings with it risky and potentially fraudulent.

CMTrading reportedly claims affiliation with GCMT South Africa Pty Ltd, which it says is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. However, the SEC’s investigation found these claims to be misleading.

The platform has also been found to use cloned websites of well-known Nigerian and international media outlets, including Punch Newspaper, Vanguard Newspaper, BBC, Channels Television, and Arise Television, to lure unsuspecting investors. Additionally, CMTrading has circulated fake videos and images of prominent Nigerians on social media, falsely promising financial rewards to subscribers.

The SEC’s probe into CMTrading revealed several red flags typical of Ponzi schemes. These include promises of unusually high returns, a heavy reliance on referral systems to sustain payouts, and the use of fake websites to manage subscriber investments.

Investors are strongly advised to avoid engaging with CMTrading or its representatives, as doing so could result in significant financial losses.

To safeguard your investments, the SEC urges Nigerians to verify the registration status of any trading platform before investing. The Commission provides official verification portals where investors can confirm whether a platform is licensed to operate in Nigeria:

SEC Fintech and Innovation Hub Registered Operators

SEC Capital Market Operators

This warning follows a recent SEC alert against another unregistered crypto project, Punisher Coin ($PUN), and Zugacoin GPT which was identified as a pump-and-dump scheme with no real value or regulatory approval.