The Securities and Exchange Commission (SEC) has warned the public that it is illegal to use unregistered digital investment platforms, as concerns mount over the rising popularity of such platforms
This renewed stance by the Commission follows social media uproar surrounding the operations of CBEX, a digital asset platform currently under scrutiny for allegedly freezing customer withdrawals and offering returns “too good to be true”.
Over the weekend, dozens of users flooded social media with complaints that they were unable to access their funds; prompting fears that the platform might be the latest in a long line of Ponzi-style operations disguised as fintech innovation.
Checks by The Nation revealed the platform is not listed on the SEC’s official database, despite the company’s claims to provide investors with a 100 per cent return on their USD-denominated “investments” in as little as one month, along with referral bonuses. This alone, according to SEC Director-General Emomotimi Agama, is grounds for concern.
While the Securities and Exchange Commission (SEC) of Nigeria has not mentioned CBEX by name, it has taken notice. Speaking yesterday at a virtual session on the newly enacted Investment and Securities Act (ISA 2025), Agama made it clear that platforms operating without regulatory oversight are illegal.
“Very recently, there has been a post that has gone viral around a particular platform and the activities of such platforms. And of course, the aftermath of it is further news of their closure and all of that.
“In fact, I was tagged in one of those messages. I want to state it very clearly. If it is not registered, it is illegal,” Agama stated firmly.
The SEC DG discussed the terms of the Investment and Securities Act (ISA 2025), which was recently approved by President Bola Tinubu. He noted that the Act has set clear guidelines for digital asset platforms, including the need for registration in order to foster confidence and transparency.
Investors, he said, can feel safer because the SEC can now crack down on illegal practices including pump and dump tokens, Ponzi schemes, and unregistered exchanges.
He explained that the SEC is now empowered to investigate and shut down unlicensed digital trading platforms, as well as prosecute influencers, celebrities, and promoters who lend legitimacy to suspicious schemes. Agama warned that the days of unaccountable promotions are over.
“It is important that even for celebrities, we must be cautious around what we do. Becoming influencers or introducing meme coins, that does not mean well for the generality of Nigerians, are not going to be tolerated,” he warned.
Experts warn that the country’s fintech boom has created a grey area, where innovation often outpaces regulation. The result is a playground for fraudsters who exploit trust and lack of oversight to run short-lived scams. CBEX, they opine, is just one of many platforms currently filling this void.
“This is a wake-up call,” Chuka Obioha, a financial analyst stated.
“When people hear 100 per cent returns in 30 days, that should raise immediate red flags. These schemes rely on a steady stream of new deposits to pay earlier investors, and once that flow dries up, they collapse.”
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