Watch Out for Suspicious Investment Schemes: SEC Warns Nigerians
Investment Warning for Nigerians: Avoiding Ponzi Scams and Protecting Finances
In a bold move, the Securities and Exchange Commission (SEC) has ramped up warnings against deceptive investment schemes, particularly unregistered ventures promising high returns in the digital asset, forex trading, and blockchain realms.
Recently, the SEC has cast a wary eye on platforms that dangle promises of guaranteed or unusually high returns with minimal risk. Behaviors like this should set off alarm bells for prospective investors. Such schemes often disguise themselves as legitimate with catchy phrases like "risk-free investments" or "guaranteed returns."
Particularly on the radar are unregistered digital asset platforms peddling cryptocurrency investments, forex trading schemes guaranteeing exorbitant returns with little to no risk, and blockchain-based operations flouting regulatory norms.
As a precaution, the SEC advises investors to verify the registration status of potential investments on the official SEC website: https://sec.gov.ng/cmos. This step alone can save investors from potential financial loss and legal trouble.
In more specific instances, news outlets such as SaharaReporters have highlighted the recent collapse of Ponzi schemes like BitFinance Global and CBEX, which escaped with investors' funds by promising high yields. Though the SEC did not single these schemes out in their latest warnings, they serve as cautionary tales for investors.
Violators of Section 196(3) of the Investments and Securities Act 2025 face severe consequences. The law criminalizes operating or promoting unregistered schemes, with punishment ranging from a fine of at least ₦20 million, a prison sentence of 10 years, or both.
In sum, the SEC urges the public to be vigilant against fraudulent investment schemes. By partnering with the SEC, Nigeria's investment environment can remain secure and prosperous. So, stay alert, do your due diligence, and verify registration statuses to safeguard your financial future!
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- The Securities and Exchange Commission (SEC) in Nigeria has emphasized the need for investors to be wary of deceitful investment schemes, especially unregistered ventures promising securities in the digital asset, forex trading, and blockchain realms.
- As the general-news of Ponzi schemes collapsing like BitFinance Global and CBEX indicates, such schemes often use catchy phrases like "risk-free investments" or "guaranteed returns" to lure unsuspecting investors.
- In 2025, violators of Section 196(3) of the Investments and Securities Act face severe consequences, including a fine of at least ₦20 million, a prison sentence of 10 years, or both, for operating or promoting unregistered investment schemes.
- The Economic and Financial Crimes Commission (EFCC) and SEC have launched a joint crackdown on Ponzi schemes in Nigeria, with a particular focus on unregistered crypto and forex platforms.
- In a bid to protect investors, the SEC has suspended a private firm and plans to publish the names of operators involved in fraudulent activities in the journal.
- Even celebrities like Davido are not immune to the dangers of investing in unregistered securities, with the SEC warning Nigerians to tread cautiously.
- President Tinubu's recent appointment of new SEC board members signals a commitment to strengthening Nigeria's capital market and ensuring a secure and prosperous investment environment for all Nigerians in the realm of business, politics, and crime-and-justice.
