The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, declaring that all investment and digital asset platforms not registered with the Commission are operating illegally.
This comes in the wake of the reported collapse of CBEX, a digital investment platform, with investors allegedly losing over N1.3 trillion. The platform became inaccessible after users experienced persistent withdrawal issues, account balance wipes, and eventual shutdown of its communication channels, including Telegram.
CBEX, which promised 100% return on investment in 30 days, later offered suspicious verification deals of $2,000 for $200 and $1,000 for $100 in a last-minute attempt to calm aggrieved investors.
Responding to the development, SEC’s Head of External Relations, Efe Ebelo, quoted Director-General Dr. Emomotimi Agama, reaffirming that the newly signed Investments and Securities Act 2025 gives the Commission stronger powers to regulate digital asset platforms. She emphasized that platforms must register with SEC to ensure investor safety and prevent fraudulent practices like Ponzi schemes and unlicensed exchanges.
The SEC also cautioned celebrities and influencers against promoting unverified coins and platforms, stating that such actions will not be tolerated under the new law.
Meanwhile, angry investors were seen in a viral video looting CBEX’s office in the Oke Ado area of Ibadan. Witnesses said office furniture and equipment were taken as the premises were forcibly entered.
CBEX, which claimed affiliation with the China Beijing Equity Exchange, was revealed to have no ties to the Chinese entity and only began operations in Nigeria in 2024, contradicting its public claims of being in existence since 2017.
The Economic and Financial Crimes Commission (EFCC) and Interpol have reportedly launched an investigation into the matter, as investors continue to protest at CBEX offices in Lagos and Ibadan.
