Following the alleged collapse of CBEX, the SEC has reiterated that all investment and digital asset platforms not registered with the Commission are operating illegally in Nigeria
The Securities and Exchange Commission (SEC) has issued a strong and renewed warning to the Nigerian public, unequivocally stating that all investment and digital asset platforms operating within the country without proper registration with the Commission are doing so illegally.
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This warning comes at a critical time following the alleged collapse of the digital investment platform CBEX, which has reportedly led to investors incurring losses exceeding N1.3tn.
The platform became inaccessible after users faced persistent issues with withdrawals, culminating in the sudden wiping of account balances.
Subsequently, CBEX has locked its official Telegram channels and announced a postponement of withdrawals, while offering investors a controversial “lifeline” requiring them to pay $200 for a purported $2,000 verification or $100 for a $1,000 verification.
When contacted for comment, the Head of External Relations at SEC Nigeria, Efe Ebelo, reaffirmed the Commission’s stance, emphasizing that the provisions of the recently enacted Investments and Securities Act 2025 empower the SEC to take decisive action in such matters.
Quoting the SEC Director-General, Dr Emomotimi Agama, Ebelo conveyed that the new Act establishes clear and comprehensive rules and regulations for digital asset platforms, including mandatory registration requirements designed to foster transparency and build trust within the investment ecosystem.
This legal framework, he explained, “allows the SEC to crack down on illicit activities, such as Ponzi schemes, pump and dump tokens, and unregistered exchanges, creating a safer environment for investors.
It is important that even for celebrities, we must be cautious about what we do. Becoming influencers or introducing meme coins that do not mean well for the generality of Nigerians is not going to be tolerated.”
Dr Agama “The ISA 2025 is intended to promote FinTech growth and innovation, specifically within the digital asset space, while ensuring regulatory compliance. However, I want to say this very clearly: if it is not registered, it is illegal. The law will be enforced. Therefore, everyone that is going to be involved in this space must endeavour to fulfil the requirements of the law.”
Earlier on Tuesday, a video circulating on social media depicted a group of individuals forcibly entering and ransacking the CBEX office located in the Oke Ado area of Ibadan, Oyo State. Eyewitness accounts suggest that the mob looted tables, couches, and other office equipment from the premises.
CBEX had enticed investors with the promise of an exceptionally high 100 per cent return on investment within a short 30-day period.
The platform, which claimed its name stood for China Beijing Equity Exchange, gained significant traction among Nigerian investors in 2024.
However, reports have since emerged indicating that the digital platform had no actual affiliation with the legitimate Chinese entity and only commenced operations in Nigeria recently, directly contradicting its claims of existence since 2017.
