The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging with the cryptocurrency and commodities trading platform, CMTrading.

In a statement issued on Saturday, the SEC clarified that CMTrading is not registered to solicit investments from the public or to operate in any capacity within the Nigerian capital market.

The Commission further stated that the platform allegedly claims affiliation with GCMT South Africa Pty Ltd, which is purportedly licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles as a securities dealer.

Describing the warning as necessary due to growing concerns about fraudulent activities in Nigeria’s capital market, the SEC noted that CMTrading has allegedly cloned the websites of reputable media organisations—including Channels Television, The Punch, Vanguard, BBC, and Arise Television- to lure unsuspecting individuals.

Also see: Customs Alerts Public to Fake Recruitment Scams

“The platform uses cloned websites of reputable media houses such as the Punch Newspaper, Vanguard Newspaper, BBC, Channels Television and Arise Television to attract unsuspecting victims. It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers.
“The Commission hereby informs the public that the 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 revealed that CMTrading engages in questionable practices, including promises of excessively high profits, a dependency on referral networks to maintain payouts, and the use of fraudulent websites for user interaction and investment activities.

The Commission warned that investing with CMTrading carries significant risk, stressing that anyone dealing with the platform or its agents does so entirely at their own peril.

To guard against scams, the SEC urged the public to verify the registration status of any investment firm using its official verification tools. These platforms are available at: https://home.sec.gov.ng/fintech-and-innovation-hub-registered-fintech-operators and https://www.sec.gov.ng/cmos

In a related development, the Commission recently flagged another unlicensed crypto initiative known as Punisher Coin ($PUN), branding it a meme coin lacking any actual value or real-world utility.

According to the SEC, Punisher Coin bore all the hallmarks of a classic pump-and-dump scheme, where hype drives up interest and prices before early movers exit, leaving later investors with worthless tokens.

The coin was being pushed via unauthorised presales and aggressive digital marketing, which featured misleading claims aimed specifically at Nigerian investors.

The SEC confirmed that neither the coin nor its promoters held any form of regulatory approval to operate in the country’s capital market.

In a separate case, earlier this year, many Nigerians were defrauded by CBEX, an elaborate Ponzi scheme that eventually collapsed.

When the platform folded, investors reportedly lost over ₦1.5 trillion, adding to a growing list of financial disasters perpetuated by weak regulatory oversight in Nigeria’s investment landscape.