- The SEC has sent a note of warning to Nigerians to be cautious about investing with AfriQuantumX
- The commission described it as an unregistered and potentially fraudulent platform associated with Ponzi schemes
- SEC urged Nigerians to verify the registration status of any company offering investment opportunities
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s Securities and Exchange Commission (SEC) has cautioned the public against investing with AfriQuantumX, describing it as an unregistered and potentially fraudulent investment platform.
The commission said that anyone who invests or engages with the entity does so at their own risk, noting that its operations display characteristics commonly associated with Ponzi schemes.
SEC warns Nigerians about AfriQuanyumX’s activities. Photo: Nurphoto
Source: Getty Images
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In a statement, the SEC said its attention had been drawn to the activities of AfriQuantumX, which presents itself as an investment platform trading in cryptocurrency and stocks for Nigerian investors.
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The SEC stated in a recent notice:
“The Commission hereby informs the public that AfriQuantumX is not registered with the Commission to solicit investments from the public or operate in any capacity within the Nigerian capital market.”
According to the commission, AfriQuantumX claims to have attracted $51 million (about ₦76 billion) in investments and paid $452 million in dividends. The platform also claims to have 12,300 active users and 34,900 verified users.
A misleading Message from AfriQuantumX
AfriQuantumX describes itself as a platform that integrates artificial intelligence (AI) to optimise financial strategies.
It claims the project was created to promote economic development in Africa and has been recognised for its innovation in the financial sector.
On its website, the platform asserts:
“The platform offers new, safe investment opportunities adapted to the needs of those who want to grow their wealth in a reliable and sustainable way.”
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BusinessDay reports that AfriQuantumX also said that investors can start with as little as $250, promising a transparent and efficient mechanism to receive regular income directly into their bank accounts.
SEC tells Nigerians to stay away from AfriQuantumX. Photo: SEC
Source: Facebook
Do not invest in AfriQuantumX
Meanwhile, the SEC said investigations have revealed that AfriQuantumX has been actively promoted on social media platforms and online forums, misleading unsuspecting Nigerians into believing it is a legitimate investment option.
“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. “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 Commission again warns that dealing with unregistered or unregulated entities in the Nigerian Capital Market exposes investors to financial risks, including fraud and possible loss of funds.
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“The investing public is therefore advised to verify the registration status of any company or entity offering investment opportunities on the Commission’s official portal — www.sec.gov.ng/cmos before doing business with them.”
CMTrading cryptocurrency platform
In a related development, Legit.ng reported that the SEC also cautioned the public about CMTrading, a cryptocurrency and commodities trading platform.
The platform claims to be affiliated with GCMT South Africa Pty Ltd, which is said to be licensed as a securities dealer by the Financial Services Authority (FSA) of Seychelles and the Financial Sector Conduct Authority (FSCA) of South Africa.
Source: Legit.ng
