Nigeria’s Securities and Exchange Commission (SEC) has cautioned the public against investing with AfriQuantumX, describing it as an unregistered and potentially fraudulent investment platform.

The commission said that anyone who invests or engages with the entity does so at their own risk, noting that its operations display characteristics commonly associated with Ponzi schemes.

In a statement, the SEC said its attention had been drawn to the activities of AfriQuantumX, which presents itself as an investment platform trading in cryptocurrency and stocks for Nigerian investors.

The SEC stated in a recent notice: “The Commission hereby informs the public that AfriQuantumX is not registered with the Commission to solicit investments from the public or operate in any capacity within the Nigerian capital market.”

According to the commission, AfriQuantumX claims to have attracted $51 million (about ₦76 billion) in investments and paid $452 million in dividends. The platform also claims to have 12,300 active users and 34,900 verified users.

AfriQuantumX describes itself as a platform that integrates artificial intelligence (AI) to optimise financial strategies.

It claims the project was created to promote economic development in Africa and has been recognised for its innovation in the financial sector. On its website, the platform asserts: “The platform offers new, safe investment opportunities adapted to the needs of those who want to grow their wealth in a reliable and sustainable way.”

BusinessDay reports that AfriQuantumX also said that investors can start with as little as $250, promising a transparent and efficient mechanism to receive regular income directly into their bank accounts.

Meanwhile, the SEC said it has uncovered that AfriQuantumX has been actively promoted on social media platforms and online forums, misleading unsuspecting Nigerians into believing it is a legitimate investment option. "Investigations have revealed that AfriquantumX has been actively promoted on social media platforms and online forums.

Furthermore, its operations exhibit characteristics commonly associated with fraudulent Ponzi schemes. "Accordingly, the public is advised to be cautious about investing with the said AfriquantumX, as any person who places investment or engages with the entity. does so at his/her own risk.

"The Commission again warns that dealing with unregistered or unregulated entities in the Nigerian Capital Market exposes investors to financial risks, including fraud and possible loss of funds.

"The investing public is therefore advised to verify the registration status of any company or entity offering investment opportunities on the Commission’s official portal — www.sec.gov.ng/cmos before doing business with them.”