The Securities and Exchange Commission of Nigeria has clarified its stance on CBEX, a digital asset trading platform, stating that any such platform operating without registration is illegal.
This statement follows user complaints and rumors that CBEX and similar platforms may have been shut down after users were unable to access or withdraw their funds over the weekend.
Speaking during a virtual engagement with fintech stakeholders on the Investment and Securities Act (ISA 2025) on Monday, the Director General of SEC, Emomotimi Agama, warned Nigerians against patronizing unregistered digital asset platforms.
“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 directly mentioning the platform.
Social media was flooded with concerns on Friday over the operations of CBEX, as several users raised alarms that it may be a Ponzi scheme.
The panic followed reports from users who were unable to withdraw their funds, sparking fears that the platform might have collapsed.
However, some users maintained that the platform was still operational, explaining that withdrawals were temporarily unavailable due to its stated rules and regulations.
CBEX presents itself as an investment platform promising a 100% return on investment within a month, with all transactions conducted in USD. It also offers referral bonuses to users who bring in new investors.
Regarding the Investment and Securities Act (ISA 2025), recently signed by President Bola Tinubu, the SEC Director-General emphasized that the Act establishes clear rules and regulations for digital asset platforms.
According to the SEC, this allows the Commission to combat illicit activities like Ponzi schemes, pump-and-dump tokens, and unregistered exchanges, helping to create a safer investment environment.
“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,” he warned.
It was previously reported that the SEC is now authorized under the ISA 2025 to prosecute promoters of Ponzi schemes in the country.
In a recent TV interview, the SEC Director-General highlighted that before the new law, the Commission lacked the legal authority to go after Ponzi scheme operators, making it difficult to bring them to justice.
Agama mentioned that, under the new law, operators of Ponzi schemes in Nigeria now face up to 10 years in prison and a N40 million fine if caught.
He added that the law equips the Commission with the resources needed to combat fraudulent operators and bring relief to Nigerians.
