SEC warns Nigerians towards investing in AfriQuantumX

The Securities and Alternate Fee (SEC) has warned Nigerians towards investing in AfriQuantumX, an internet funding platform claiming to commerce cryptocurrency and shares.

The fee acknowledged that the corporate shouldn’t be registered to function within the nation’s capital market.

“The Fee hereby informs the general public that AfriquantuMX is NOT REGISTERED by the Fee both to solicit investments from the general public or function in any capability inside the Nigerian capital market. 

“Investigations have revealed that AfriquantuMX has been actively promoted on social media platforms and on-line boards. Moreover, its operations exhibit traits generally related to fraudulent Ponzi schemes,” they acknowledged.

SEC warns buyers 

The capital market regulator suggested the general public to train warning, warning that any one who locations funding or engages with the entity does so at his/her personal threat.

“Accordingly, the general public is suggested to be cautious about investing with the stated AfriquantuMX, as any one who locations funding or engages with the entity, does so at his/her personal threat,” the SEC acknowledged.

It additionally reiterated that coping with unregistered funding entities exposes buyers to potential lack of funds.

“The Fee makes use of this medium to reiterate that transacting within the Nigerian Capital Market with unregistered and unregulated entities exposes buyers to monetary threat, together with fraud and potential lack of funding,” they stated.

The SEC urged buyers to at all times verify the registration standing of any funding firm earlier than partaking with it.

“The investing public is subsequently reminded of the necessity to VERIFY the registration standing of corporations and entities providing funding alternatives on the Fee’s devoted portal – www.sec.gov.ng/cmos, earlier than transacting with them,” the discover added.

What it is best to know 

This newest warning provides to the listing of unregistered funding platforms the Fee has flagged lately. SEC has repeatedly warned Nigerians to keep away from platforms promising unrealistic returns, particularly these working outdoors its regulatory oversight, a few of that are:

• Earlier within the 12 months, the Fee issued a warning towards Risevest (Victoria Island Cooperative Multipurpose Society Restricted) and Stecs (Alausa Cooperative Multipurpose Society), stating that neither is authorised to conduct funding operations in Nigeria’s capital market.
• It additionally cautioned towards Professional-vest and My Share, each operated by UYJ Multitrade Ltd, in addition to Promiseland Estates Ltd and Promiseland Constructing & Building Ltd, which had been linked to Professional-Vest. In accordance with the Fee, these entities had been soliciting funds from the general public underneath the guise of funding advisers and fund managers with out correct registration.
• The Fee equally warned buyers about PWAN MAX, describing its operations as typical of a fraudulent Ponzi scheme. SEC famous that the platform was not registered and had been making guarantees of unusually excessive returns whereas failing to honour withdrawal requests from buyers.
• One other entity, Silverkuun Funding Cooperative Society, was flagged for providing unregistered monetary companies.
• In a separate discover, CMTrading was additionally named amongst unregulated platforms.