SEC Flags 7 Investment Platforms as Ponzi Schemes in 2025

The Securities and Exchange Commission (SEC) has continued its efforts to protect Nigerian investors from fraudulent investment schemes, issuing fresh warnings about seven platforms it has identified as unlicensed and operating Ponzi-style businesses.

Amid growing digital adoption and the widespread use of social media for financial promotions, unsuspecting Nigerians are increasingly falling victim to get-rich-quick schemes disguised as legitimate investment opportunities. The SEC has responded with public alerts, investigations, and enforcement actions.

Here are seven platforms flagged by the SEC so far in 2025:

1. Pocket Option

Date Flagged: July 21, 2025
Marketed as an online fund manager, Pocket Option attracted investors through digital advertisements and social media promotions, promising high returns. The SEC found that the platform was unregistered and displayed all the traits of a Ponzi scheme. Nigerians were warned to steer clear.

2. Forsman & Bodenfors LTD (F&B)

Date Flagged: July 14, 2025
F&B falsely claimed to be the Nigerian arm of a Swedish advertising agency. It reportedly lured Nigerians with fake job offers, encouraging them to pay fees for employment or to recruit others. SEC investigations revealed it to be a pyramid recruitment scam and cautioned the public against any engagement.

3. Value Growth Platform

Date Flagged: June 30, 2025
This platform promised guaranteed investment returns and incentives for referrals. According to the SEC, the operation fits the typical profile of a Ponzi scheme. It was operating without proper registration, and investors were warned that participation is at their own risk.

4. CMTrading

Date Flagged: June 20, 2025
Claiming affiliations with financial regulators in South Africa and Seychelles, CMTrading misled users through fake websites and doctored media content using logos of known Nigerian news outlets. The SEC emphasized that it relied on a referral system and exaggerated returns—classic red flags for Ponzi operations.

5. Sapphire Scents Limited

Date Flagged: June 19, 2025
Despite promoting itself as an investment advisory firm, Sapphire Scents Limited had no registration with the Nigerian capital market authorities. The SEC stated that the company was operating an illegal investment scheme and urged Nigerians to avoid any financial transactions with them.

6. CBEX (Crypto Bridge Exchange) / ST Technologies International Ltd

Date Flagged: June 11, 2025
After collapsing in April with many investors’ funds trapped, CBEX reemerged under the name ST Technologies (also referred to as Smart Treasure). Users reported that the platform demanded extra payments before withdrawals could be processed. The SEC confirmed that both CBEX and its rebranded version were not licensed and were already under investigation. Legal action has been initiated in collaboration with law enforcement.

7. Punisher Coin ($PUN)

Date Flagged: June 5, 2025
Marketed as a meme cryptocurrency, Punisher Coin launched an unauthorized presale. The SEC warned that it lacked any real project or utility and is likely a “pump and dump” scheme—where prices are artificially inflated by hype before the promoters sell off their holdings, leaving others with losses.

Ongoing Risks and Warnings

The SEC has reiterated that none of these platforms is authorized to offer investment services or solicit funds from the Nigerian public. It urged citizens to be cautious and verify the registration status of any investment company before committing funds.

The Commission also emphasized that the appearance of a company on social media or even mainstream media does not guarantee legitimacy. Investors are advised to consult the official SEC website or approved regulatory channels to confirm any firm’s status.

As online scams continue to evolve in complexity, financial literacy and vigilance remain the first line of defense for Nigerians seeking genuine investment opportunities.