SEC Warns Against Cryptocurrency Fraud

The Securities and Exchange Commission (SEC) has issued a strong warning to investors and the general public, advising them to steer clear of Marino FX Ltd, a company falsely claiming to be a licensed cryptocurrency exchange.

In a recent statement published on its official website, the SEC clarified that Marino FX Ltd is neither registered nor authorised to operate within Nigeria’s capital market, including providing cryptocurrency exchange services. The regulator described the company’s claims of being SEC-licensed as “false and misleading.”

The SEC urged investors to avoid transacting with Marino FX Ltd or its representatives, highlighting the significant risks involved in dealing with unregistered entities. The commission warned that engaging with such companies exposes investors to fraud and potential loss of funds.

“The public is hereby advised to exercise caution and refrain from engaging with Marino FX Ltd,” the statement read, highlighting the commission’s commitment to protecting investors and maintaining the integrity of Nigeria’s capital market.

In a related effort to safeguard the financial ecosystem, the SEC has proposed stringent penalties for operators of Ponzi schemes under the draft Investments and Securities Bill 2024. The proposed legislation includes a fine of ₦20 million, a 10-year prison sentence, or both for promoters of illegal investment schemes.

Speaking at a public hearing on the bill, Director-General of the SEC, Dr. Emomotimi Agama, emphasised that the provisions explicitly outlaw Ponzi and pyramid schemes to protect Nigerians from fraudulent fund managers.

He noted that the new bill aims to strengthen regulatory frameworks, address ambiguities, and enhance the global competitiveness of Nigeria’s capital market. Dr. Agama further highlighted the legislation’s role in positioning the market as a catalyst for national economic transformation.

The SEC also reiterated its resolve to combat fraud, money laundering, and market manipulation in Nigeria’s fast-evolving cryptocurrency sector. The regulator’s proactive measures reflect its broader strategy to ensure investor confidence and uphold market integrity in an era of rapid financial innovation.