The Securities and Exchange Commission (SEC) of Nigeria has addressed concerns regarding the operations of CBEX, a digital asset trading platform, declaring that any platform not registered with the SEC is operating illegally.
This statement comes amid growing apprehensions from users who reported difficulties in withdrawing their funds over the weekend, leading to speculation about the potential closure of the platform. To make matters worst investors now reportedly have zero balance in their wallets.
In a recent virtual meeting with fintech stakeholders regarding the new Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama emphasized the importance of engaging only with registered platforms. Although he did not specifically name CBEX, he made it clear that any unregistered platform is deemed illegal.
Social media buzzed with discussions on Friday as users expressed concerns about CBEX, with some suggesting that it may resemble a Ponzi scheme due to the withdrawal issues. While some users claimed that the platform remained operational, they noted that withdrawals were currently restricted by the platform’s policies. CBEX markets itself as an investment opportunity promising a 100% return on investment within a month, solely in USD, and offers bonuses for referrals.
Investigations by Nairametrics revealed that CBEX is not listed in the SEC’s official database, confirming its unregistered status.
In light of the recent ISA 2025, which was signed into law by President Bola Tinubu, Agama discussed the establishment of clearer regulations for digital asset platforms, including mandatory registration aimed at fostering transparency and trust. This legal framework will empower the SEC to take stronger action against illicit activities, such as Ponzi schemes and unregistered exchanges, thereby creating a safer investment environment.
Agama also highlighted the need for caution among influencers and celebrities in promoting investment opportunities, warning that irresponsible endorsements could be detrimental to the public. The SEC is now equipped to prosecute promoters of Ponzi schemes, thanks to the enhanced legal authority provided by the new legislation. Previously lacking the necessary legal backing, the SEC now has the means to hold operators accountable, with penalties including up to ten years of imprisonment and fines reaching N40 million for those found guilty.
Agama expressed confidence that the new regulations would help eliminate fraudulent operators and foster greater investor confidence in the Nigerian market, reinforcing the SEC’s commitment to investor protection.