The SEC in a letter dated September 7, 2018, asked Menzgold Ghana Limited to shut down with immediate effect in the trading of gold until further notice.

READ ALSO: ‘I stand with Menzgold’ – Ghanaians flood social media with support messages

The letter which was signed by the Deputy Director General of SEC, Paul Ababio said that “the SEC hereby directs Menzgold Company Ltd to shut down immediately the business of trading in gold collectibles with guaranteed returns to clients which constitutes, in essence, dealing in securities with neither the necessary license nor disclosure authorised by the SEC.”

The letter added that “no new contracts should be created and all advertising of the investment business halted with immediate effect.”

READ ALSO: Presidency sets up C’ttee to investigate AG’s complaints of ‘unlawful interference’

Responding to this letter, the gold-trading firm, accused the Securities and Exchange Commission (SEC) of exhibiting bad faith.

"As a law-abiding organisation, we have referred the matter to our lawyers and rest assured, the right action shall be taken."

It also assured the customers that neither Menzgold as a business entity nor any of its products has been down.