On Monday, the Nigeria Securities and Exchange Commission (SEC) warned Nigerians to avoid unregistered digital investment platforms. The caution follows the sudden collapse of CBEX, a digital asset trading platform that has locked users out of their funds since April 9.
- On Monday, the Nigeria Securities and Exchange Commission (SEC) warned Nigerians to avoid unregistered digital investment platforms.
- The caution follows the sudden collapse of CBEX, a digital asset trading platform that has locked users out of their...
- Read also: New law strengthens SEC’s regulatory power “Recently, there has been a viral post concerning a particular platform and its activities,...
- The SEC boss further cautioned influencers and celebrities against promoting unregistered investments.
Keep reading for the full breakdown on CBEX — everything you need to know is covered below.
SEC Director General Emomotimi Agama emphasised during a Zoom meeting with fintech stakeholders that any platform not registered with the Commission is operating illegally.
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New law strengthens SEC’s regulatory power
“Recently, there has been a viral post concerning a particular platform and its activities, which has since been followed by news of its closure. I want to be very clear — if it is not registered, it is illegal,” Agama stated.
Agama noted the Investment and Securities Act (ISA) 2025 as a critical tool in combating fraudulent schemes. “With the new law, there are now clear rules for digital asset platforms, including registration requirements designed to enhance transparency and build public trust,” he explained.
The SEC boss further cautioned influencers and celebrities against promoting unregistered investments. “Celebrities must be cautious. Introducing Nigerians to unregulated investments under the guise of promotion or popularity is irresponsible and poses serious risks to the public,” he warned.
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CBEX scam leaves investors in shock
Meanwhile, thousands of Nigerians are counting heavy losses after CBEX, which promised a 100 percent return on investment within 30 days, unexpectedly shut down. Several Nigerians discovered their digital wallets emptied, while the platform disabled withdrawals and closed its Telegram channels.
Reports suggest CBEX operated without proper licensing and displayed fake balances to deceive users. Many Nigerians now believe the platform functioned as a Ponzi scheme, using new investors’ funds to pay earlier ones. In a final attempt to exploit victims, CBEX demanded additional payments under the guise of a “verification” process.
In conclusion, Agama assured the public of the SEC’s commitment to investor protection, stating, “This new law allows us to get rid of bad actors and give Nigerians renewed confidence in the financial markets.”