The Securities and Exchange Commission (SEC) has declared the activities iBSmartify Nigeria illegal as the company is not registered by the commission.
The SEC in a statement on Sunday in Abuja said the products offered by the companies are illegal and cautioned Nigerians against dealing with the company.
“The attention of the Commission has been drawn to the activities of iBSmartify Nigeria the promoters of a Blockchain known as iBledger (iBcashcryptocurrency) and InksNation.
“The general public is hereby advised that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the Commission.
“In view of the above, the Commission therefore warns the general public that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk”, the statement stated.
The Commission recently raised the alarm over the proliferation of the operation of unlawful/unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment and has warned Nigerians against patronising them.
SEC explained: “These activities are perpetrated by suspected promoters of Ponzi and other fraudulent schemes under the following identities: Loom Nigeria Money, Box Value Trading Company Ltd, Now-Now Alert, Flip Cash Investment, Result Investment Nigeria Limited, Helping Hand and Investment and No Failure Development and Empowerment Nig. Ltd.
Others are “MBA Forex and Investment Ltd, Federate Investors Trading Company, Jamalife Helpers Global Ltd, Flexus Global Solutions and Investment Ltd, United Capital Investment Company Limited”.
The commission urged the public to note that by virtue of the provisions of Section 38(1) of the Investments and Securities Act (ISA) 2007, only persons registered with the Commission can engage in capital market activities, thus making the actions of these entities listed above unlawful.
“Consequently, the general public is hereby advised to refrain from investing in any scheme of the entities listed above, and WARNS that any person who invests in an unlicensed/unlawful scheme does so at his own peril”.
Ms Mary Uduk, acting Director-General of the SEC, in a recent statement, had said such outfits are not registered to carry out fund management functions of any sort, stressing that those who stubbornly patronize them end up burning their fingers.
According to her, the capital market has been properly positioned to attract Nigerians and provide benefits to Nigerians who invest therein. She added that SEC has sustained its investor education programme to assist people to understand whatever issues they have around the capital market.
“But besides that, there are new products coming up every day in the Nigerian capital market. We have a lot of ethical funds, one of the safest areas to invest in is in Mutual Funds, Collective Investments Schemes and we encourage Nigerians to be part of these and others”.
The Acting DG said the SEC is presently undertaking various initiatives to make the capital market more user-friendly such that people can participate in it with greater ease, comfort and convenience.