The Securities and Exchange Commission (SEC) of Nigeria has issued a stern warning to the public against investing in Crypto Bridge Exchange (CBEX), declaring the platform unregistered and operating illegally within the Nigerian capital market. CBEX, also known by aliases such as ST Technologies International Ltd and Smart Treasure/Super Technology, has been accused of engaging in unauthorized investment solicitations, luring unsuspecting investors with promises of implausibly high returns, a classic hallmark of a Ponzi scheme. The SEC clarified that CBEX has never been granted registration to operate as a digital assets exchange, solicit investments, or perform any other regulated function within the Nigerian capital market. This declaration follows reports of CBEX promising a 100% return on investment within 30 days, a claim that has raised significant red flags and prompted investigations by the regulatory body.
The SEC’s preliminary investigations have revealed a pattern of deceptive practices employed by CBEX, including falsified withdrawal records designed to create a facade of legitimacy and mask the difficulties investors face when attempting to retrieve their funds. The platform’s promotional activities have been characterized as misleading, creating a false sense of security and reliability to attract investors. Further substantiating the concerns, CBEX has reportedly shut down its physical offices amidst a rising tide of complaints from investors struggling to access their investments. This sudden closure further underscores the platform’s dubious nature and reinforces the SEC’s warning against engaging with the entity.
The SEC, empowered by the Investments and Securities Act 2025, is taking decisive action against CBEX, its affiliates, and promoters. The commission plans to collaborate with law enforcement agencies to pursue enforcement actions, ensuring that those responsible for the alleged fraudulent activities are held accountable. This proactive approach aims to protect investors and maintain the integrity of the Nigerian capital market. The SEC’s Director-General, Emomotimi Agama, has emphasized the commission’s commitment to a more robust and coordinated enforcement regime against illegal and unregistered investment schemes, particularly those operating in the digital and virtual assets space.
The new Investments and Securities Act 2025 provides the SEC with enhanced powers to prosecute operators of Ponzi schemes, including those leveraging digital platforms. This strengthened legal framework enables the commission to pursue legal action against CBEX and its promoters, ensuring they do not escape the consequences of their alleged fraudulent activities. Agama has reassured the public that the promoters of CBEX will be held accountable under the new law, reinforcing the SEC’s commitment to investor protection and market confidence restoration. This decisive stance sends a clear message that illegal investment schemes will not be tolerated within the Nigerian financial landscape.
While the SEC is committed to fostering innovation within the financial services sector, it emphasizes the importance of operating within a regulated framework that prioritizes investor protection and market integrity. The commission recognizes the potential of financial innovation but stresses that it must be conducted responsibly and transparently, adhering to regulatory guidelines to safeguard investors and maintain market stability. The case of CBEX serves as a stark reminder of the risks associated with unregulated investment platforms and the importance of due diligence before committing funds.
The Federal Government has expressed sympathy for the victims of CBEX, acknowledging the devastating impact of Ponzi schemes on individuals and the economy. The government underscores the need for collective action to combat the proliferation of such schemes, emphasizing the importance of public awareness and education in preventing further victimization. This collaborative approach, involving regulatory bodies, law enforcement agencies, and public awareness campaigns, aims to create a more secure investment environment and protect Nigerians from fraudulent investment schemes. The government’s acknowledgement of the issue and call for collective action highlights the seriousness of the problem and the commitment to addressing it effectively.
