Revealed! SEC issues important warning on CMTrading platform

• SEC warned the nationalist astir CMTrading, a cryptocurrency and commodities trading level that is not registered
• The level allegedly imitates reputable media outlets and uses cloned contented to pull victims, promising precocious profits
• The SEC urges caution, advising Nigerians to verify concern platforms done its authoritative portals to debar fraud

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market..

The Securities and Exchange Commission (SEC) has cautioned the nationalist astir CMTrading, a cryptocurrency and commodities trading platform.

SEC stated that the cryptocurrency and commodities trading level replicated the websites. Photo Credit: Contributor
Source: Getty Images

The level claims to beryllium affiliated with GCMT South Africa Pty Ltd, which is said to beryllium licensed arsenic a securities trader by the Financial Services Authority (FSA) of Seychelles and the Financial Sector Conduct Authority (FSCA) of South Africa, according to a connection released by the Commission connected Saturday.

To lure unsuspecting victims, the Commission stated that the cryptocurrency and commodities trading level replicated the websites of reputable media outlets.

Concerns implicit fraudulent enactment successful Nigeria's superior market prompted the SEC to contented the alert.

“The level uses cloned websites of reputable media houses specified arsenic The Punch Newspaper, The Vanguard Newspaper, BBC, Channels Television, and Arise Television to pull unsuspecting victims. It besides posts cloned videos and pictures of salient Nigerians connected societal media, promising monetary benefits to subscribers,” the connection read.

The Commission revealed that CMTrading was not authorised to run successful immoderate capableness wrong the Nigerian superior marketplace oregon solicit investments from the wide public.

“The SEC hereby informs the nationalist that CMTrading is not registered by the Commission to solicit investments from the nationalist oregon run successful immoderate capableness wrong the Nigerian superior market,” the connection continued.

Furthermore, the SEC’s investigations showed that CMTrading’s business practices exhibited the telltale signs of a Ponzi scheme.

The Commission claims that the platform's operations included utilizing fraudulent websites to pull users and investors, promising abnormally precocious profits, and relying heavy connected a referral strategy to prolong rewards.

Because anyone who deals with CMTrading oregon its representatives does truthful astatine their ain risk, the SEC recommended that the Nigerian nationalist workout caution erstwhile making investments with the company.

SEC revealed that CMTrading was not authorised to run successful immoderate capableness wrong the Nigerian superior market. Photo Credit: Contributor
Source: Getty Images

The SEC emphasised the value of utilizing its authoritative verification portals to corroborate an concern platform's registration presumption to assistance safeguard investors against fraud.

SEC flags Zugacoin, SamZuga GPT arsenic unregistered

Legit.ng reported that the Securities and Exchange Commission (SEC) has flagged two cryptocurrencies arsenic not registered with the commission.

The SEC warned Nigerians that ZUGACOIN, owned by Sam Zuga, with its variants specified arsenic SZCB and SZCB2, and SAMZUGA GPT, saying they are unapproved.

The committee disclosed successful a caller announcement stating the promoters oregon issuers of ZUGACOIN and SAMZUGA GPT are not licensed to run successful immoderate capableness successful the Nigerian superior market, flagging the meme coins arsenic illegal.

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Source: Legit.ng