SEC declares CBEX operations illegal, warns public against unregistered digital platforms

By Seun Ibiyemi

The Securities and Exchange Commission (SEC) has issued a firm warning to Nigerians over the use of CBEX, a digital asset trading platform operating in the country, stating that any such platform not registered with the Commission is considered illegal.

This declaration follows widespread concern over the weekend, when several users reported being unable to withdraw funds from the platform, fuelling speculation on social media that the operation may be collapsing.

During a virtual session with fintech stakeholders on Monday, centred around the recently enacted Investment and Securities Act (ISA) 2025, SEC Director General, Emomotimi Agama, underscored the dangers of engaging with unregulated platforms.

“Recently, a particular platform has gained attention online, with numerous posts going viral regarding its activities. Subsequently, there have been reports suggesting its shutdown. I want to make this absolutely clear—if a platform is not registered with the SEC, it is illegal,” Agama said, though he stopped short of naming CBEX directly.

Last Friday, social media platforms were flooded with warnings from users alleging that CBEX showed signs of being a Ponzi scheme. The alarm was sparked by failed withdrawal attempts, although some users argued the platform was still operational, citing internal rules as the reason for the withdrawal restrictions.

CBEX presents itself as an investment platform that guarantees a 100 percent return on investment within one month. It accepts only USD-denominated transactions and incentivises users through referral bonuses—characteristics that have raised red flags within the regulatory space.

A check of the SEC’s official database confirms that CBEX is not registered with the Commission, reinforcing its unauthorised status.

Agama, discussing the provisions of the new ISA 2025 law signed by President Bola Tinubu, stated that the legislation sets out explicit guidelines for digital asset platforms, including mandatory registration requirements. These rules are intended to improve investor transparency, build trust, and clamp down on fraudulent activity in the market.

“The Commission is now better positioned to combat illegal schemes—including Ponzi setups, pump-and-dump tokens, and unregistered exchanges—thereby fostering a safer investment environment for all Nigerians,” he explained.

Agama also issued a warning to celebrities and social media influencers who lend their platforms to questionable ventures.

“Whether it’s promoting meme coins or associating with projects that ultimately harm the Nigerian public, such actions will no longer be tolerated. We all have a responsibility to ensure what we promote is legitimate and beneficial,” he said.

The new law grants the SEC prosecutorial powers it previously lacked. According to Agama, under the ISA 2025, operators and promoters of Ponzi schemes now face up to 10 years in prison and a N40 million fine.

In a recent television appearance, Agama acknowledged that the Commission had, until now, lacked the legal foundation to hold Ponzi scheme operators accountable, making enforcement difficult. With this legislative upgrade, he said, the SEC is now fully equipped to act decisively against bad actors in the market.

“This will enable us to remove rogue operators and provide relief to investors,” Agama said. “Nigerians can now feel more secure investing in our capital market, knowing that investor protection is not just a policy priority—it is now backed by law.”