SEC cautions investors against cryptocurrency scammers

The Securities and Exchange Commission has cautioned investors and the general public against engaging with Marino FX Ltd, which is falsely claiming to be an SEC-licensed cryptocurrency exchange.

In a statement released on Wednesday, on the commission website, the regulator clarified that Marino FX Ltd is neither registered nor licensed by the SEC to operate in the Nigerian capital market in any capacity, including cryptocurrency exchange services.

“Any claim to the public by the company of its registration or license by the SEC is false and misleading,” the SEC said.

The commission further urged investors to avoid transacting with Marino FX Ltd or its representatives, noting that dealing with unregistered entities exposes investors to significant risks, including fraud and potential loss of investment. “The public is hereby advised to exercise caution and refrain from engaging with Marino FX Ltd,” the SEC added.

The SEC reiterated its commitment to safeguarding investors and ensuring the integrity of Nigeria’s capital market.

The agency has also proposed a fine of N20m, 10 years imprisonment, or both for operators of Ponzi schemes under the draft Investments and Securities Bill 2024.

Speaking at a public hearing on the bill last week, SEC Director-General, Emomotimi Agama, stated that the proposed legislation includes stringent penalties to curb the activities of illegal investment scheme promoters.

According to Agama, the bill expressly prohibits Ponzi and pyramid schemes to protect Nigerians from fraudulent fund managers. He added that the move aims to strengthen regulatory frameworks, eliminate ambiguities, and improve the global competitiveness of the Nigerian capital market.

Agama also emphasised that the proposed amendments would reposition the market to drive national economic transformation.

The PUNCH reported that the Securities and Exchange Commission has vowed to combat fraud, money laundering, and market manipulation in the country’s rapidly evolving cryptocurrency sector.