The Securities and Exchange Commission (SEC) has spoken out in response to rising concerns over the activities of digital investment platforms in Nigeria, particularly those operating without regulatory approval.
The development follows heightened anxiety surrounding a platform known as CBEX, which offers digital asset trading services but has come under scrutiny after numerous users reported being unable to withdraw funds.
In light of the situation, the SEC reaffirmed its position that any platform operating without official registration is operating outside the bounds of the law.
This clarification comes amid widespread speculation that CBEX may have ceased operations. Reports from over the weekend suggested many users faced difficulties accessing their funds, fueling fears of an impending shutdown.
During a virtual meeting on Monday with fintech industry stakeholders to discuss the newly enacted Investment and Securities Act (ISA 2025), SEC Director General, Emomotimi Agama, delivered a firm warning to the public.
“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, without mentioning CBEX by name.
Rising Uncertainty Surrounding CBEX
Social media erupted on Friday as users voiced their frustrations and suspicions about CBEX, likening it to previous Ponzi-style operations.
The panic was triggered by reports of withdrawal failures, prompting fears that the platform may have crashed. However, some users insisted that CBEX was still functional, attributing the delays to internal policies and technical adjustments.
CBEX promotes itself as a digital investment outlet promising investors a 100% return in just 30 days. It operates entirely in U.S. dollars and offers referral bonuses, a setup that has raised eyebrows within the financial community.
A check by Nairametrics revealed that CBEX does not appear in the SEC’s official registry, further deepening doubts about its legitimacy.
SEC’s New Authority Under ISA 2025
The signing of the Investment and Securities Act 2025 by President Bola Tinubu has granted the SEC greater oversight powers, especially concerning digital asset platforms that fall outside traditional regulatory frameworks.
Agama noted that the new legislation introduces “clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.”
These measures are designed to empower the Commission to identify and shut down deceptive schemes, unauthorized exchanges, and misleading promotions within the digital finance ecosystem.
“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,” Agama added.
What This Means for Investors
In the past, regulatory gaps limited the SEC’s ability to pursue legal action against individuals behind Ponzi schemes. But with the new law in effect, Agama stated in a recent television interview that the Commission now has the legal authority to prosecute offenders.
Operators of such schemes now risk facing up to 10 years in prison and a fine of N40 million upon conviction.
Agama expressed optimism that the Commission’s enhanced powers would improve investor protection, eliminate bad actors, and boost confidence in Nigeria’s financial markets.
“This would also allow the Commission to get the ‘bad guys’ out of the way and making sure that people are more confident and happier to invest in the Nigerian market knowing fully well that the investor protection responsibility of the SEC has now been enhanced,” he concluded.
