The attention of the Securities and Exchange Commission has been drawn to radio advertisements and other modes of solicitations of the public to invest in cryptocurrencies such as Swisscoin, OneCoin, Bitcoin and other such virtual or digital currencies. The public is hereby advised to exercise extreme caution with regard to digital (cryptocurrencies) as a vehicle of investments.
Published yesterday, the official public notice is advising investors to be wary of investment schemes and companies soliciting investment via cryptocurrencies. The warning comes after the revelation that MMM Nigeria – a prominent multi-marketing Ponzi scheme – is making a comeback after enabling bitcoin as a form of payment when it reopens its customers’ accounts tomorrow, January 14. The MMM Ponzi scheme’s participants saw their accounts frozen in December.
It is estimated that three million Nigerians were affected when MMM Nigeria froze subscriber accounts in December.
The warning read:
Nigeria’s capital market regulator, the Securities and Exchange Commission (SEC) has warned the public against investing in cryptocurrencies including Bitcoin.
The authority also reminded investors that none of companies or individuals publicizing cryptocurrency-related investments were recognized or authorized to receive deposits. Deeming some as “high risk” investment opportunities, the SEC also pointed to “outright fraudulent pyramid schemes” without mentioning MMM Nigeria outright.
With its re-opening tomorrow, MMM Nigeria claims to enable payouts in Bitcoin, in addition to Nigeria’s fiat currency, the naira. The scheme is also luring investors by citing bitcoin’s recent price growth, pointing to further returns in addition to a “30%” monthly growth. Participants have also been informed that they will be able to convert their balances from bitcoin to naira in the event of falling bitcoin prices.
The SEC is also reminding users that there will be no consumer protection available to investors in virtual currencies or schemes using them in the event of them going bust.
Image from Shutterstock.
Emin Gun Sirer: SEC ICO Guidance is 'End of Beginning for Blockchains'
The Cornell University professor who was among the first to warn about the vulnerabilities that led to the collapse of The DAO has issued new statements on a ruling today from the US Securities and Ex
Token Summit Creator: SEC ICO Guidance a 'Breath of Fresh Air'
It might not be the first reaction you'd expect from one of the people most responsible for popularizing the use of cryptographic tokens as an investment tool.
However, the founder of the Token Sum
'Not a Surprise': Blockchain Industry Saw SEC ICO Action Coming
The SEC said today that some initial coin offerings (ICOs) may qualify as securities sales – a move that while expansive in impact, wasn't that surprising to legal and regulatory observers in the spac
Emin Gun Sirer: SEC ICO Ruling is 'End of Beginning for Blockchains'
Aircraft Asset Management: An Untapped Market for Blockchain Technology
Bas de Vos, director of IFS Labs, thinks blockchain technology has an untapped market in managing commercial aircraft assets, according to MRO-Network.com.
There are disparate systems for managing
SEC: US Securities Laws 'May Apply' to Token Sales
The US Securities and Exchange Commission said today that the offering and sale of digital tokens "are subject to the requirements of the federal securities laws".
The agency, in its statement, rev
Bitcoin slammed by more than 10% to below $2,500; Ethereum down big too
Bitcoin fell to its lowest in five days Tuesday amid uncertainty over whether the digital currency will still avoid a split. Bitcoin dropped more than 10 percent to $2,487.13, its lowest since
Ether Prices Drop Below $200 Amid Wider Crypto Market Fall
Ether prices are down more than 11%, dropping below $200 amidst a wider market fall among the world's top cryptocurrencies.
According to CoinDesk data, the price of ether – the cryptocurrency of th