Investors Beware: SEC Warns Against Marino FX Limited

Investors Beware: SEC Warns Against Marino FX Limited

The Securities and Exchange Commission (SEC) has cautioned the public to steer clear of Marino FX Limited, a company falsely claiming to be a licensed cryptocurrency exchange. The SEC emphasised that Marino FX is neither registered nor authorised to operate in Nigeria’s capital market.

In a statement released yesterday, the SEC clarified, “Marino FX Ltd., which claims to be an SEC-licensed cryptocurrency exchange, is NOT registered or licensed by the SEC to operate within the Nigerian capital market, including as a cryptocurrency exchange.”

The Commission labelled Marino FX’s claims as deceptive and misleading. It urged the public to avoid dealings with the company or its representatives to prevent financial losses.

The SEC highlighted the dangers of engaging with unregistered and unregulated entities in the capital market. Such transactions often expose investors to significant risks, including fraud and total loss of investments.

Reaffirming its dedication to protecting investors, the SEC stated its resolve to clamp down on fraudulent activities and scams targeting unsuspecting Nigerians.

The SEC has been working on the Investments and Securities Bill (ISB) 2024 as part of its ongoing efforts to tighten regulations. The proposed legislation introduces stringent penalties for operators of Ponzi schemes, including fines of up to ₦20 million, jail terms of up to 10 years, or both.

During a public hearing last week, SEC Director-General Dr. Emomotimi Agama underscored the bill’s importance in tackling fraudulent practices. “The ISB 2024 includes clear prohibitions against Ponzi and pyramid schemes, aiming to safeguard Nigerians from predatory investment schemes,” Dr. Agama said.

The SEC revealed that the new bill addresses gaps in the Investments and Securities Act of 2007. These updates aim to enhance the regulatory framework, eliminate ambiguities, and align Nigeria’s capital market regulations with global standards.

Dr. Agama also highlighted that the proposed updates would improve the market’s competitiveness internationally while reinforcing investor confidence in Nigeria’s financial ecosystem.

The SEC remains firm in its mission to protect investors and ensure a fair and transparent capital market. It urged Nigerians to verify the registration status of any investment platform with the SEC before engaging in transactions.

The warning against Marino FX Limited serves as a reminder for investors to exercise caution and prioritise due diligence when exploring investment opportunities.