The Nigerian Securities and Exchange Commission (SEC) has issued a warning regarding the trading platform CMTrading, labeling it as unregistered and potentially fraudulent.
SEC's Warning About CMTrading
The SEC of Nigeria stated that CMTrading is not registered to provide trading or financial services in the country. The platform claims to be affiliated with GCMT South Africa Pty Ltd, allegedly licensed by financial regulators in South Africa and the Seychelles.
Methodology of the Platform
The platform has been offering crypto and commodities trading services, using cloned websites of well-known media outlets to attract users. The SEC also noted the usage of fake videos featuring prominent personalities allegedly endorsing the platform, promising high returns. Additionally, it was highlighted that the operational methods may exhibit signs of a Ponzi scheme.
SEC's Recommendations for the Public
The SEC warns citizens about the risks associated with interacting with CMTrading. The agency advises checking the registration status of investment platforms through its official portals and being particularly wary of promises of unrealistically high returns.
The SEC of Nigeria continues its fight against unregistered platforms and fraud in the market. Citizens are strongly urged to exercise caution and verify the legitimacy of investment offers.
