CBEX: SEC to clamp down on unlicensed Ponzi schemes
The Securities and Exchange Commission has issued a fresh warning to Nigerians, declaring that all investment and digital asset platforms not registered with the Commission are operating illegally.
The warning came to light as digital investment platform CBEX allegedly collapsed, with reports indicating losses amounting to over N1.3tn incurred by investors.
The PUNCH reported that the platform became inaccessible after users experienced persistent withdrawal failures, followed by sudden account balance wipes.
CBEX has since locked its Telegram channels and postponed its withdrawals while giving investors the lifeline of $2,000 for $200 verification and $1,000 for $100 verification.
When contacted, the Head of External Relations, SEC, Nigeria, Efe Ebelo, reiterated that the provisions of the newly signed Investments and Securities Act 2025 enables the Commission to act decisively in matters like this.
Quoting the SEC Director-General, Dr Emomotimi Agama, Ebelo said the Act has established clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.
This, he said, “allows the SEC to crack down on illicit activities, such as Ponzi schemes, pump and dump tokens, and unregistered exchanges, creating a safer environment for investors. It is important that even for celebrities, we must be cautious about what we do. Becoming influencers or introducing meme coins that do not mean well for the generality of Nigerians is not going to be tolerated.
“The ISA 2025 is intended to promote FinTech growth and innovation, specifically within the digital asset space, while ensuring regulatory compliance. However, I want to say this very clearly: if it is not registered, it is illegal. The law will be enforced. Therefore, everyone that is going to be involved in this space must endeavour to fulfil the requirements of the law,” the statement she shared with The PUNCH partly read.
Earlier on Tuesday, a social media video emerged showing a group of individuals ransacking the CBEX office located in the Oke Ado area of Ibadan, Oyo State.
Eyewitnesses said the mob forcibly entered the premises, carting away tables, couches, and other office equipment.
CBEX promised investors a 100 per cent return on investment within 30 days. CBEX, which stands for China Beijing Equity Exchange, was a digital asset trading platform that gained prominence in Nigeria in 2024.
According to reports, the digital platform had no connection to the real Chinese entity and began operations in Nigeria only recently, contradicting its claims of existence since 2017.
