Cytonn Scandal: The Capital Markets Authority has announced that Cytonn Investments is not regulated or authorized. The announcement came after a video of an investor claiming she hasn’t been paid emerged.
“The Authority confirms that Cytonn Investments is not a licensed and approved entity,” Capital Markets Authority chief executive officer Wyckliffe Shamiah said. He added that “investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit (CMFIU), which is the Police Unit attached to the Capital Markets Authority. CMFIU is currently investigating the issue for criminal violations for investors in the Cytonn High Yield Solutions (CHYS).”
The markets authority also said that it is currently investigating potential criminal violations for investors in the Cytonn High Yield Solutions (CHYS), an unregulated fund by Cytonn Investments. “Investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit (CMFIU),” CMA said.
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A distressed investor in the fund on Thursday lamented the non-payment of monies falling due next month. The investor under the user name Lynn Ngugi on Twitter slammed Cytonn for asking her to extend the maturity of her investments by a further year, even after taking an initial one year moratorium, or convert her investment into real estate by taking up property in Cytonn. This latest Cytonn scandal is bound to see the investment firm rise up against CMA, which it considers as biased and unfair.
