The Capital Markets Authority (CMA) has warned Kenyans against investing in two investment schemes amid concerns over suspected fraudulent activities linked to unregulated entities.
In a warning notice issued on Friday, October 16, CMA said it was working with the Capital Markets Fraud Investigations Unit (CMFIU) to investigate Global Investment Group and QVSE.
CMA asked anyone with information about cryptocurrency wallet addresses or transaction identification details linked to suspicious transfers involving the entities to submit it through its official email address or its whistleblower portal.
“Any person who has information relating to the cryptocurrency wallet addresses associated with suspected fraudulent activities and transaction hashes/IDs linked to suspicious transfers by these entities is requested to share any information to support ongoing investigations,” the regulator stated.
CMA Chief Executive Wyckliffe Shamiah.
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CMA
The regulator also urged Kenyans to remain vigilant when dealing with online investment platforms, warning them to verify the licensing status of companies before committing their money.
Investors can confirm whether an investment firm is authorised to operate in Kenya through CMA’s official register of licensed entities.
At the same time, the authority cautioned the public against putting money into platforms without first confirming that they have the necessary approvals.
The latest notice follows an earlier warning issued in September, when CMA flagged 15 investment platforms accused of offering investment services without the required licences or regulatory approvals.
In the September 12 notice, the regulator said the platforms were allegedly soliciting money from Kenyans through investment opportunities that included cryptocurrency, forex trading and money market funds.
The authority also disclosed that the 15 platforms were subject to investigations by the Directorate of Criminal Investigations (DCI), in collaboration with CMA and other law enforcement agencies.
The warnings come as digital investment platforms attract Kenyans seeking alternative ways to grow their savings and earn additional income.
Online platforms can make it easier to access investment opportunities, but they can also expose investors to losses where operators are unregulated or the promised returns are misleading.
A photo depicting a person holding Kenya Shilling notes and US Dollar notes
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Janta Kenya