SEC warns Nigerians against CMTrading, labels it fraudulent and unlicensed in the country.
Platform accused of cloning websites, faking endorsements and operating like Ponzi scheme.
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The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging with CMTrading, a cryptocurrency and commodities trading platform, citing fraudulent practices and unauthorized operations within the country’s financial market.
In a public notice released on Friday, June 21, 2025, and signed by the Commission’s management, the SEC clarified that CMTrading is not registered to solicit investments or conduct any form of capital market business in Nigeria.
“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 official statement read.
False credentials and dubious affiliations
The platform, which claims association with GCMT South Africa Pty Ltd, allegedly holds licenses from the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. However, the SEC stressed that such affiliations do not grant CMTrading the legal right to operate in Nigeria or target Nigerian investors.
More worryingly, the platform has been found to engage in manipulative marketing tactics, including the cloning of websites belonging to reputable media organizations like The Punch, Vanguard, BBC, Channels TV, and Arise News. These fake platforms are used to entice unsuspecting investors by creating a false sense of credibility.
According to the SEC, CMTrading also fabricates videos and images of well-known Nigerian personalities on social media, falsely implying endorsements and promising unrealistic financial rewards to users who join the platform.
“It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers,” the statement warned.
Classic signs of a Ponzi scheme
Following a thorough investigation, the SEC said CMTrading exhibits multiple red flags consistent with a Ponzi scheme. These include:
- Promises of unusually high returns with little to no risk.
- Heavy reliance on referrals, where existing users are encouraged to bring in new investors to sustain payouts.
- Use of fake websites and digital assets to simulate a legitimate investment platform.
The Commission emphasized that engaging with such schemes places investors at serious financial risk. Any transactions made through CMTrading, it warned, are outside the protection of Nigeria’s regulatory framework, and victims may be unable to recover lost funds.
A trend of illicit crypto schemes
CMTrading is the latest in a growing list of unlicensed crypto-related ventures flagged by the SEC. Just last week, the Commission warned against another dubious digital asset project known as Punisher Coin ($PUN). The coin was being marketed through aggressive social media campaigns, unauthorized presales, and unrealistic claims, despite having no intrinsic value or functional utility.
According to the SEC, Punisher Coin fits the mold of a classic pump-and-dump scheme, where early hype is used to lure in investors, only for prices to crash after insiders exit with profits, leaving latecomers with worthless tokens.
The SEC’s repeated warnings underscore the increasing threat posed by unregulated digital platforms in Nigeria. As cryptocurrency and online trading grow in popularity, the Commission continues to stress due diligence and regulatory compliance as essential safeguards for investors.
In the case of CMTrading, the message is clear: do not engage, and if you already have, be aware that you are doing so entirely at your own risk.
