FG WARNS NIGERIANS OVER NEW PONZI SCHEME
The Securities and Exchange Commission (SEC) has warned that investors, investing their money in Loom Money in Nigeria, a ponzi scheme are at risk.
Acting Director-General of the commission, Mary Uduk made this known in Abuja today, saying the venture is not a tangible business model.
Uduk, represented by the acting Executive Commissioner, Operations of SEC, Isyaku Tilde described the venture as a ponzi scheme where returns are paid from other people’s invested funds.
Uduk said that unlike MMM - another ponzi scheme that penetrated the Nigerian market and crashed with billions of naira lost - which had a website and a known promoter, the promoters of Loom are not yet known and the pyramid scheme operates through closed groups mainly on WhatsApp and Facebook.