The Securities and Exchange Commission (SEC) has launched enforcement actions against CBEX (Crypto Bridge Exchange) and similar investment platforms operating illegally within Nigeria. This move follows widespread reports of massive financial losses suffered by investors who were drawn in by deceptive promises of high returns.
In a recent announcement, the Commission confirmed that CBEX, which operated under different names such as ST Technologies International Ltd and Smart Treasure/Super Technology, was never authorised to function as a Digital Assets Exchange or solicit funds from the Nigerian public.
According to the SEC, CBEX presented itself as a legitimate digital asset trading platform, targeting Nigerians with promotional campaigns that promised unrealistically high and guaranteed profits within a short period. The platform reportedly collapsed, locking away billions of naira in investor funds, and has since shut down its physical offices and stopped processing withdrawal requests.
“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,” the SEC said in a statement released on April 17, 2025.
As part of its response, the SEC pledged to work closely with law enforcement agencies to hold the operators accountable. The Commission is invoking Section 196 of the Investments and Securities Act 2025 to pursue legal action against CBEX, its affiliated companies, and promoters of the scheme.
The Economic and Financial Crimes Commission (EFCC) has also entered the fray, assuring affected investors that efforts are underway to trace and recover their trapped funds. According to the EFCC, it is already “working with Interpol and our international development agencies to ensure the operators are brought to book.”
The SEC’s latest action comes shortly after it published a list of 58 illegal investment platforms currently targeting Nigerians, warning the public to stay vigilant. The regulator emphasised the danger of falling for platforms that depend on referral-based models or that guarantee unusually high profits with little to no risk.
CBEX is now the most prominent example of such schemes, having lured countless victims through digital campaigns and shut down abruptly, triggering panic and a wave of complaints.
To avoid falling prey to similar scams, the Commission urged Nigerians to verify the registration status of any investment company by using its official website (www.sec.gov.ng/cmos) before engaging in any financial dealings.
The SEC reaffirmed its commitment to investor protection, vowing to continue its clampdown on fraudulent financial operations and fake investment firms throughout the country.
