REGULATION | SEC Nigeria Warns Nigerians Against Fraudulent Crypto Ponzi Platform, CMTrading, Over Unlicensed Operations

The Nigerian Securities and Exchange Commission (SEC Nigeria) has issued a strong warning to the public against engaging with CMTrading, a cryptocurrency trading platform allegedly operating illegally in Nigeria.

According to SEC Nigeria, CMTrading is neither registered nor regulated by the Commission, making its operations within the country unauthorized and potentially dangerous to investors.

In a public notice dated June 21, 2025, the Commission stated:

“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of CMTrading, an online trading platform that claims to offer a wide range of financial services including Forex and CFDs trading on commodities, indices, and cryptocurrencies.

The commission herey 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 platform also claims to be licensed as GCMT South Africa PTY Ltd by the Financial Sector Conduct Authority (FSCA) of South Africa and as a securities dealer by the Financial Services Authority (FSA) of Seychelles.

According to SEC Nigeria, the platform uses cloned websites of reputable media houses to attract unsuspecting victims. It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers.

The platform allegedly used misleading content and media to create a false impression of credibility and compliance, with SEC Nigeria confirming that all such claims are false.

The SEC emphasized that any individual or organization that deals with CMTrading does so at their own risk, as the firm is not licensed to operate in the Nigerian capital market.

The Commission reiterated its mandate to protect investors and warned Nigerians to always verify the regulatory status of any investment platform before participating.

This warning is part of SEC’s ongoing efforts to clamp down on illegal investment schemes and protect the public from financial fraud, particularly in the fast-growing but often risky digital asset space.

Following the lifting of Nigeria’s crypto ban by the Central Bank in December 2023, the SEC has stepped up its oversight of digital assets, particularly under its new framework for Virtual Asset Service Providers (VASPs). The regulator now requires all promoters of crypto-related products to register under its digital asset rules, or face enforcement action.

“Anyone who engages with the entity or its representatives does so at his/her own risk,” the SEC reiterated.

This is not the first time Nigeria’s SEC has moved to protect retail investors from crypto schemes. Since 2021, the Commission has repeatedly warned the public against engaging with platforms and projects that:

• Lack registration or licensing in Nigeria;
• Offer unrealistic investment returns; or
• Promote anonymous, high-risk digital tokens without clear disclosures.

The Commission strongly advises the Nigerian public to:

• Avoid participating in the ongoing presale of Punisher Coin;
• Verify the registration status of any crypto promoter or project using the SEC’s dedicated portal;
• Be skeptical of operations promise unusually high returns and heavily rely on a referral system to sustain pay-outs and with desperate requests for subscribers to fund accounts.

The SEC Nigeria’s firm stance is part of a broader effort to build a safer, more transparent capital market, as Nigeria grapples with balancing fintech innovation and consumer protection.

With an estimated over 33 million crypto users as of 2024, Nigeria remains one of the largest crypto markets globally – but one where regulation is still evolving.

The SEC’s approach suggests a clear red line: unregistered projects promoting speculative assets will not be tolerated.

Stay tuned to BitKE for deeper insights into the Nigerian crypto space.

Join our WhatsApp channel here.

_________________________________________