By Chukwuma Umeorah
The Securities and Exchange Commission (SEC) has vowed to go after the promoters of Crypto Bridge Exchange (CBEX), a digital asset-trading platform accused of defrauding Nigerian investors of over N1.3 trillion
In a statement issued on Thursday, the Commission clarified that “neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.”
The statement added that CBEX operated under several aliases including ST Technologies International Ltd, Smart Treasure, and Super Technology, presenting itself as a legitimate digital asset-trading platform while promising investors unrealistically high returns.
SEC Director General, Emomotimi Agama, warned that the promoters of the failed scheme would not escape justice, as the Commission intensifies efforts to clamp down on illegal investment schemes.
“Promoters of the failed scheme will not go free,” Agama said, adding that the newly enacted Investments and Securities Act, 2025 (ISA 2025), gives the Commission enhanced legal backing to prosecute ponzi schemes and shut down unregulated platforms.
Preliminary investigations by the SEC revealed that CBEX engaged in promotional activities that misled the public and created a false perception of legitimacy.
The platform allegedly attracted funds from unsuspecting members of the public with the promise of implausible guaranteed returns within a short timeframe.
However, CBEX reportedly failed to honour withdrawal requests from its subscribers and abruptly shut down its physical offices amid rising complaints from investors.
The SEC, citing Section 196 of the ISA 2025, disclosed that it would collaborate with relevant law enforcement agencies to initiate appropriate enforcement actions against CBEX, its affiliates, and its promoters.
“The Commission uses this medium to remind the public to refrain from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models. Prospective investors are advised to verify the registration status of investment platforms via the Commission’s dedicated portal before transacting with them,” the statement warned.
Agama further stated that the SEC is set to launch a more forceful and coordinated enforcement regime against phony investment schemes, taking advantage of the broader powers granted by the ISA 2025.
“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms,” he said.
While affirming the Commission’s support for innovation in finance and investments, Agama stressed that such developments must occur within a regulatory framework to safeguard investors and maintain market integrity.
“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” he stated.
Agama also recalled that even under the limitations of the now repealed law, the SEC had successfully shut down several Ponzi schemes, leading to the conviction of some promoters, including Fahmzi Interbiz.
He assured that with the strengthened powers of the ISA 2025, the Commission is now better equipped to prevent future abuses and enforce accountability across the capital market.