SEC Warns Nigerians Against Unregistered Crypto Firm, CMTrading

The Securities and Exchange Commission (SEC) has issued a public alert warning Nigerians not to engage with CMTrading, a cryptocurrency trading platform it describes as unauthorized and potentially fraudulent.

According to the commission, CMTrading is operating in Nigeria without proper registration or regulatory approval.

The platform, which claims ties to GCMT South Africa Pty Ltd and regulatory licenses in South Africa and Seychelles, has not been licensed to carry out investment or trading services within Nigeria’s capital markets.

The SEC raised concerns over CMTrading’s use of cloned websites and manipulated media content to create a false impression of legitimacy.

The commission stated that the firm has misrepresented its operations by using logos and branding from established news organizations like Channels Television, the BBC, Arise News, and major Nigerian newspapers such as Punch and Vanguard.

“These tactics are intended to deceive and lure unsuspecting Nigerians into risky and unregulated investment schemes,” the SEC said.

Investigations by the SEC revealed that CMTrading employs common red flags seen in fraudulent schemes, including promises of unusually high returns, multi-level referral incentives, and fabricated endorsements using images of prominent Nigerians.

The Commission warned that engaging with CMTrading or similar unregistered platforms puts investors at significant financial risk, and any losses incurred will not be covered by regulatory protection.

Nigerians are encouraged to verify any investment or trading platform through the SEC’s official channels before making financial commitments. The commission also directed the public to its online portals for confirming registered financial entities and fintech operators.

This latest warning follows a broader regulatory crackdown on unlicensed digital investment schemes, including recent advisories against meme coins and other crypto-related scams.