Nigeria’s Securities and Exchange Commission (SEC) has sounded the alarm over a foreign trading platform allegedly targeting local investors with deceptive practices.
According to the regulator, the platform, which claims to deal in cryptocurrencies and commodities, is operating illegally in Nigeria. The SEC warned that it has no license to solicit investments within the country and urged the public to steer clear of the service.
Concerns were raised after it was discovered that the firm had been using misleading content, including doctored media and impersonated endorsements, to attract users. The platform was said to be mirroring websites of reputable news outlets and circulating altered images of well-known personalities to gain public trust.
The SEC further noted that its internal checks revealed patterns typically associated with investment fraud, including promises of unrealistic returns and a suspicious referral structure, which are hallmarks of Ponzi-style operations.
As part of its advisory, the Commission encouraged Nigerians to verify the status of any investment firm or digital asset project through its official database of registered entities. It also reminded the public that engaging with unlicensed operators could result in financial loss, with no legal recourse for victims.
This caution comes shortly after a similar warning was issued against another cryptocurrency scheme with no legitimate backing or real-world utility.
