Nigeria’s Securities and Exchange Commission (SEC) has issued a strong warning to the public against engaging with an online platform identified as CMTrading, declaring it illegal and unregistered to operate within the country’s capital market.

In a statement released on Friday, the Commission said CMTrading falsely presents itself as a cryptocurrency and commodities trading platform and claims to be licensed by South Africa’s Financial Sector Conduct Authority (FSCA) and Seychelles’ Financial Services Authority (FSA).

The SEC noted that the platform uses cloned websites of reputable media organisations, including Punch, Vanguard, BBC, Channels Television, and Arise News, to lure unsuspecting Nigerians. It reportedly circulates fake videos and images of public figures while promising monetary returns to entice subscribers.

According to the Commission, CMTrading exhibits typical signs of a Ponzi scheme, including unrealistic profit promises, aggressive referral incentives, and pressure on users to fund accounts hastily.

“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.

SEC further warned that any individual who transacts with the platform or its agents does so at personal risk, urging the public to verify the registration status of any financial platform via its dedicated fintech portal or official website before investing.

The regulatory body reiterated its commitment to safeguarding investors and maintaining transparency in the Nigerian capital market.