The Securities and Exchange Commission (SEC) has issued a stern warning against unregistered investment and digital asset platforms in Nigeria following the collapse of CBEX, which allegedly left investors with losses exceeding N1.3 trillion.
According to reports, the digital platform—claiming to offer 100% returns within 30 days—abruptly became inaccessible after users faced repeated withdrawal failures and sudden balance erasures. CBEX has since shut down its Telegram channels and introduced questionable “verification” fees for access to limited withdrawals.
Reacting to the crisis, SEC spokesperson Efe Ebelo quoted the Commission’s Director-General, Dr Emomotimi Agama, saying: “If it is not registered, it is illegal. The law will be enforced.”
She emphasized that the newly enacted Investments and Securities Act 2025 grants the SEC full authority to crack down on unregulated platforms, Ponzi schemes, and fraudulent digital exchanges.
“The ISA 2025 is intended to promote FinTech growth and innovation… while ensuring regulatory compliance,” Ebelo added. “Even celebrities must be cautious—endorsing meme coins or dubious tokens will not be tolerated.”
In a related incident, angry investors reportedly stormed CBEX’s Ibadan office, carting away furniture and equipment in frustration over the loss of their funds. The platform, which claimed ties to a Chinese entity, had no verified link to the real China Beijing Equity Exchange and only began operations in Nigeria in 2024.
The SEC reiterated that all digital investment platforms must register with the Commission to protect investors and foster market integrity.