The Securities and Exchange Commission (SEC) has warned Nigerians against investing in AfriQuantumX, an online investment platform claiming to trade cryptocurrency and stocks.
The commission stated that the company is not registered to operate in the country’s capital market.
“The Commission hereby informs the public that AfriquantuMX is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market.
“Investigations have revealed that AfriquantuMX has been actively promoted on social media platforms and online forums. Furthermore, its operations exhibit characteristics commonly associated with fraudulent Ponzi schemes,” they stated.
The capital market regulator advised the public to exercise caution, warning that any person who places investment or engages with the entity does so at his/her own risk.
“Accordingly, the public is advised to be cautious about investing with the said AfriquantuMX, as any person who places investment or engages with the entity, does so at his/her own risk,” the SEC stated.
It also reiterated that dealing with unregistered investment entities exposes investors to potential loss of funds.
“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk, including fraud and potential loss of investment,” they said.
The SEC urged investors to always confirm the registration status of any investment company before engaging with it.
“The investing public is therefore reminded of the need to VERIFY the registration status of companies and entities offering investment opportunities on the Commission’s dedicated portal – www.sec.gov.ng/cmos, before transacting with them,” the notice added.
This latest warning adds to the list of unregistered investment platforms the Commission has flagged in recent years. SEC has repeatedly warned Nigerians to avoid platforms promising unrealistic returns, especially those operating outside its regulatory oversight, some of which are: