Chaka Technologies Limited, a Nigerian fintech startup, has responded to an order secured by the Security and Exchange Commission from the Investments and Securities Tribunal (IST) restraining it from advertising or offering for sale shares, stock, or other securities of companies or other entities.
A statement signed by Tosin Osibodu, Co-founder & CEO, Chaka Technologies, refuted the SEC’s claims, insisting that it has leveraged strategic partnerships to carry out its business.
Osibodu said: “We only learned about SEC’s position on the same day the statement was published on their website.
“While we await receiving the formal order from SEC, please note that all investments are placed by a duly licensed entity and remain safe through Citi Investments (using the Chaka platform), and will continue to be custodied by an SEC-regulated broker. We do not advertise, solicit, or offer securities of companies as alleged”.
“Since we began our journey in 2019, we have been transparent about our regulatory status, leveraging strategic partnerships with registered brokers in the U.S and in Nigeria, specifically Citi Investment Capital Ltd, which is regulated by the SEC. Our commitment to investor education, trust, and transparency remains a top priority,” it said.
“We would like to state that Citi Investment Capital is fully compliant with the commission’s regulations as all local equities are offered through a locally licensed brokerage firm, registered with the Nigeria Stock Exchange (NSE), Central Securities Clearing System (CSCS), and regulated by Nigeria’s Securities and Exchanges Commission (SEC)”.
“Following the SEC statement, our legal and operations teams are working to accelerate a resolution. Further updates will be provided by Monday”.
“All the information about our regulatory status is publicly available on our website at chaka.ng/disclosures. Our mission remains the same: to enable global investing for Africans”.
Recall that the Investment and Securities Tribunal had granted an interim order to restrict Chaka Technologies Limited from advertising and offering for sale, shares, stock, or other securities of NSE-listed companies.
The Securities and Exchange Commission (SEC) website, the interim Orders, which apply to all Chaka platforms, were granted pursuant to an application by the SEC.
