Victor EzejaThe Securities and Exchange Commission (SEC), has stated that it would shutdown CBEX digital investment platform and ensure that operators face full weight of the law.
This comes after the platform reportedly crashed, with many investors, including Nigerians, losing money estimated to be over one trillion naira.
Join our WhatsApp ChannelDirector-General of SEC, Dr Emomotimi Agama, said the CBEX’s false claims of global partnerships and its promises of doubling people’s investments within a month are glaring signs of fraud.
“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” Agama said.
He said the Commission had the legal backing and capacity to tackle Ponzi schemes and ensure that the investing public are protected from fraud.
According to Agama, the SEC is collaborating with the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and other relevant government agencies to investigate and prosecute violators.
He said the Investments and Securities Act (ISA) 2025, passed in March, makes adequate provisions aimed at strengthening the legal and regulatory framework for investments and capital market activities in the country.
In a notice issued on Sunday, the SEC DG warned celebrities, bloggers and influencers against promoting unregistered schemes in the country, adding that ISA 2025 has provisions which stipulate punishment for endorsing such illegal activities.
He said: “The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment.
“We are using this opportunity to warn such individuals to immediately desist from promoting unregistered entities.”
While reaffirming the commission’s commitment to investor protection and market development, Agama advised Nigerians to always confirm the reliability of any investment opportunity with the SEC before making a financial commitment.
READ ALSO: CBEX Crash: Investors Will Get Their Money Back, EFCC Assures
He further revealed that SEC has established dedicated departments to monitor market activities and conduct inspections for early detection of fraudulent dealings before people are scammed.
“These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” he emphasised.
Prime Business Africa reports that in a statement on Thursday, SEC clarified that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Asset Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.
“The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.
“Preliminary investigations carried out by the Commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.
“CBEX has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, aid mounting complaints.
READ ALSO: How Nigerians Lost N1.3trn On CBEX Digital Trading Platform
“Pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission would collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, İts affiliates and promoters.
“The Commission uses this medium to remind the public to REFRAIN from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models.
“Prospective investors are advised to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
