By Anthony Otaru, Abuja
The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians following the reported collapse of another controversial online investment platform, “XM Future Music Group,” popularly known as XM.
The Commission warned that many digital investment schemes currently being promoted on social media platforms operate illegally and bear the hallmarks of Ponzi fraud.
The warning came amid growing reports that XM Future Music Group subscribers could no longer access their funds after the platform allegedly shut down operations and turned off its communication channels.
The platform reportedly promised investors returns of up to 100 per cent within 30 days through what it described as music streaming, digital engagement and online task activities.
Subscription packages allegedly ranged from N21,600 to N93 million, while promoters reportedly claimed that an investment of N21 million could generate over N327 million within one month.
Users were also allegedly required to pay additional “work deposits” after an initial trial phase before gaining full access to the platform.
Concerns intensified after subscribers began reporting failed withdrawal attempts within the last 24 hours, while Telegram groups, customer support channels, and websites linked to the scheme suddenly became inaccessible, a pattern commonly associated with collapsed Ponzi operations.
*Commission cautions against unrealistic social media investment promises
In a public notice issued on Thursday, the SEC said its attention had been drawn to “the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.”
According to the Commission, “many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public.”
The SEC warned Nigerians against investing in platforms promising unrealistic or guaranteed profits.
“Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns,” the notice stated.
The Commission further cautioned Nigerians against relying on online investment advice from unregistered persons or entities.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” the SEC added.
The Commission reminded Nigerians that under the Investments and Securities Act, 2025, only entities registered with the SEC are authorised to provide investment services, solicit funds from the public or operate within the Nigerian capital market.
It also urged prospective investors to verify the registration status of companies and investment platforms through its official portals before committing funds.
The latest collapse has once again revived memories of previous Ponzi schemes that wiped out billions of naira from unsuspecting Nigerians.
Over the years, schemes such as MMM Nigeria, MBA Forex, Racksterli, and several unregulated digital investment platforms have collapsed after promising investors extraordinary returns.
Financial analysts have repeatedly warned that worsening economic hardship and the growing desperation for quick income have continued to expose many Nigerians to fraudulent investment schemes disguised as legitimate businesses.
Experts also warned that operators are increasingly exploiting social media influence, fake testimonials, and questionable foreign registration documents to gain public trust and attract victims.
