by The Securities and Exchange Commission (SEC) of Nigeria has issued a stern warning to Nigerians against engaging with the cryptocurrency and commodities trading platform, CMTrading, which it confirmed is not registered to operate within Nigeria’s capital market.
This alert comes amid the growing adoption of digital trading platforms across Nigeria and increasing concerns over fraudulent schemes that exploit unsuspecting investors.
CMTrading: An Unregistered Platform with Red Flags
In a public statement released on June 21, 2025, the SEC disclosed that CMTrading is not authorized to solicit investments from the Nigerian public or operate in any capacity within the country’s capital market. The platform claims affiliation with GCMT South Africa Pty Ltd, purportedly licensed by South Africa’s Financial Sector Conduct Authority (FSCA) and the Financial Services Authority (FSA) of Seychelles.
However, the SEC’s investigations revealed that CMTrading exhibits classic signs of a Ponzi scheme, including promises of unusually high returns, a heavy reliance on a referral system to sustain payouts, and the use of cloned websites and media content to lure victims.
Alarmingly, CMTrading has been found to use cloned websites of reputable Nigerian and international media houses such as Punch Newspaper, Vanguard Newspaper, BBC, Channels Television, and Arise Television to attract unsuspecting investors. It also posts fake videos and images of prominent Nigerians on social media, promising monetary benefits to subscribers, thereby amplifying its deceptive reach.
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Regulatory Landscape and SEC’s Vigilance
The SEC’s warning against CMTrading highlights the broader regulatory environment in Nigeria, where the adoption of trading platforms, especially in cryptocurrency and commodities, is rapidly increasing. While these platforms offer new investment opportunities, the regulatory framework demands strict compliance to protect investors and maintain market integrity.
The SEC has emphasized the importance of verifying the registration status of any trading or investment platform before engagement. Investors are urged to use the Commission’s official verification portals to confirm legitimacy:
- https://home.sec.gov.ng/fintech-and-innovation-hub-registered-fintech-operators
- https://www.sec.gov.ng/cmos
This is part of the SEC’s broader mandate under the recently enacted Investments and Securities Act 2025, which criminalizes the operation and promotion of unregistered investment schemes, with penalties including fines of not less than N20 million or imprisonment for up to 10 years.
Growing Popularity of Trading Platforms in Nigeria
Nigeria has witnessed a surge in the adoption of online trading platforms, driven by increased internet penetration, rising smartphone usage, and a growing interest in digital finance among the young. Cryptocurrency and commodities trading platforms have become popular avenues for wealth creation; however, this growth has been accompanied by a rise in fraudulent schemes that exploit regulatory gaps.
The SEC’s proactive stance, issuing warnings against platforms like CMTrading and others such as Punisher Coin and CBEX, reflects its commitment to safeguarding investors and promoting a transparent and accountable fintech ecosystem. The Commission continues to crack down on illegal operators, urging Nigerians to exercise caution and conduct due diligence before investing.
Conclusion
The SEC’s warning against CMTrading serves as a critical reminder for Nigerian investors to remain vigilant in the fast-evolving digital trading landscape. While trading platforms offer exciting opportunities, regulatory compliance and investor protection must remain paramount to prevent financial losses and maintain confidence in Nigeria’s capital markets.
Engage only with registered and verified platforms to ensure your investments are secure and comply with Nigerian law.
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