SEC Flags GVEST Global as Ponzi Scheme, Urges Nigerians to Avoid Unregistered Investment Platform
August 22, 2025
ABUJA — The Securities and Exchange Commission (SEC) of Nigeria has issued a stern warning to the public, flagging GVEST Global and its associated entities as an unregistered investment platform exhibiting “typical indicators and characteristics commonly associated with Ponzi schemes.” The alert, published on the SEC’s official website on August 21, 2025, cautions Nigerians against engaging with the company, which has been illegally posing as an investment adviser and fund manager while promoting unregistered investment schemes.
According to the SEC, GVEST Global operates under multiple names, including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and GTEXT Holdings, none of which are licensed to solicit investments or operate within Nigeria’s capital market. The regulator highlighted the company’s aggressive marketing tactics on social media platforms and online forums, a common strategy used by fraudulent schemes to lure unsuspecting investors with promises of high returns. “Investigations have revealed that its operations exhibit typical indicators of a Ponzi scheme,” the SEC stated, pointing to characteristics such as guaranteed returns, heavy reliance on referral systems, and lack of verifiable business models.
The SEC’s warning comes amid a broader crackdown on illegal investment platforms in Nigeria, with GVEST Global joining a growing list of flagged entities in 2025, including Crypto Bridge Exchange (CBEX), Pocket Option, Forsman & Bodenfors Ltd, Value Growth Platform, and Sapphire Scents Limited. The collapse of CBEX earlier this year, which reportedly defrauded investors of billions of naira, underscored the devastating impact of such schemes. The SEC noted that Ponzi schemes often exploit economic hardships and financial illiteracy, targeting Nigerians seeking quick financial gains.
“Nigerians must understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” said SEC Director-General Emomotimi Agama. He urged investors to verify the registration status of any investment platform through the SEC’s dedicated portal (www.sec.gov.ng/cmos) before committing funds, emphasizing that dealing with unregistered entities is at the investor’s own risk.
The newly enacted Investments and Securities Act (ISA) 2025, signed into law by President Bola Tinubu in March, has bolstered the SEC’s authority to combat such schemes. The law imposes stricter penalties, including fines up to N40 million and prison terms of up to 10 years for operators of Ponzi schemes, and bans unregistered online forex trading platforms. This legislative backing has enabled the SEC to intensify its enforcement efforts, with the commission currently investigating 79 suspected Ponzi schemes.
Public reactions on social media platforms like X reflect growing concern, with posts warning that GVEST Global’s promises of “guaranteed returns” and pressure to invest quickly are classic red flags of fraudulent operations. One user, @ProfitableMan1, noted, “They have no legal authority to collect your money in the name of ‘investments.’” The SEC has also called on Nigerians to report suspicious schemes to aid its enforcement efforts.
As Nigeria grapples with the proliferation of fraudulent investment platforms, the SEC’s proactive measures aim to protect investors and maintain confidence in the capital market. The commission’s ongoing nationwide campaigns, including market outreaches like the recent event at Dei-Dei Building Materials Market in Abuja, focus on improving financial literacy and warning against the dangers of unregistered schemes.
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