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.
Central Bank Digital Currency Brings Wider Access: Bank of Japan
A blockchain-based central bank digital currency issued to the public would allow wider and unrestricted access to payment and settlement systems, the deputy governor of the Bank of Japan said earlier
Levine on Wall Street: Bank Troubles and Oil Worries
JPMorgan had earnings.
It's a miss, $1.19 per share versus $1.31 estimates, with fixed-income revenue down in part because of the sale of the commodities unit, and in part because, you know, tradin
Levine on Wall Street: Capital Raises and Stress Tests
Deutsche Bank is raising some money.
Yesterday it announced that it's raising about 8 billion euros of common equity capital, mostly from an underwritten rights offering but also 1.75 billion euros
Cool Derivatives and Bank Consultants
I used to sell equity derivatives, and the way you sell equity derivatives is by telling scary stories about the future. Are you worried that the crisis in Ruritania will wreak havoc on your
Bitcoin's Creator Is Human. Get Over It.
Craig Wright, a compulsive degree collector from Australia, has officially laid claim to the name of Satoshi Nakamoto, the pseudonym used by the mysterious inventor of bitcoin. His motives are unclear
Bitcoin Is a High-Tech Dinosaur Soon to Be Extinct
For all the regulatory crackdowns on Bitcoin in recent weeks, the cryptocurrency's advocates remain unfailingly optimistic. Bitcoin is the future, they tell us; it heralds a future where private, stat
Levine on Wall Street: The Political Dominance of the Cabal
has a hobby
You know who thinks that George H.W. Bush masterminded 9/11 and that the CIA shot John F. Kennedy and a bunch of other stuff? Tower Research's Mark Gort
Ritholtz's Reads: The Case Against Hedge Fund Managers
Welcome back to the monkey house. Cuba, Apple, Hedgies, Greece all get featured in our Monday morning train reads:
What are you reading?
Billions Poured Into Currency-Hedged ETFs to Offset Stro