The Nigeria Securities and Exchange Commission (SEC) Sets Out to Clamp Down on Ponzi Schemes or Illegal Fund Managers in Nigeria.

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The Securities and Exchange Commission (SEC) is set out to clamp down on organisers of ponzi schemes or any illegal fund managers in Nigeria.

Mrs Efe Ebelo, the Head, Corporate Communications of SEC said this in a statement on Sunday. During the conference in Abuja, the Acting Director-General of the commission, Ms Mary Uduk also assured investors of the commitment of the SEC to fight ponzi scheme.

Uduk also assured investors that the enforcement department of the commission will be working toward prosecuting promoters of any ponzi scheme they confirm.

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In order to ensure that the commission executes its plans, the acting director-general notes that the commission has put in place various strategies to sanitize the capital market and make it safe.

Some of the strategic plans includes;

Electronic Dividends (e-dividends).

Direct cash settlement.

Regularisation of multiple accounts, among others.

Some other innovative activities put in place to improve investors’ confidence at the Capital Markets includes;

Risk Based Supervision.

Encouraging Automation.

Strengthening Self-Regulatory Organisations (SROs).

“We advise prospective investors to cross check properly before patronising any fund manager.”

In the cryptocurrency space, we know of popular ponzi schemes like nurucoin scam. Nurucoin scam is a popular uganda ponzi scheme. Some other notable ponzi scheme in the cryptocurrency space is the dunamiscoin scam from Uganda.

The move from SEC will help bring down illegal fund managers and reduce scam activities in the country. Stakeholders in Blockchain Association of Nigeria, Siban previously introduced Siban Scam alert allowing users to report scam activities in the cryptocurrency space in Nigeria.

Read in Full: [Weekly Crypto Overview]: Different Measures and Plans Being Put In Place To Avoid Crypto Scam In Nigeria

The Nigeria Capital market has cautioned the public on the Dantata Success & Profitable Company, soliciting funds from unsuspecting members of the public.

They entice them with mouth-watery monthly return on investment of between 25 percent to 50 percent. The company claims its involved in trading, general merchandise, transportation, import, export and general contract.