SEC declares CBEX, other unregistered digital platforms illegal

The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, declaring that CBEX, a digital asset trading platform currently under public scrutiny, and any similar entity not registered with the Commission, are operating illegally.

This statement follows widespread social media panic over the weekend, as users of the CBEX platform reported inability to withdraw funds, sparking fears that the investment scheme may have collapsed.

Many online users also labeled the platform a potential Ponzi scheme, given its promise of 100% return on investment within a month and bonus incentives for referrals—all denominated in USD.

Speaking during a virtual meeting with fintech stakeholders on Monday, SEC Director General Emomotimi Agama addressed the issue without naming CBEX directly but made it clear that any digital trading platform not registered with the SEC is in breach of Nigerian law.

“Very recently, there has been a viral post about a particular platform and the activities of such platforms. The aftermath is further news of their closure. I want to state it very clearly: if it is not registered, it is illegal,” Agama said.

A check of the SEC database confirms that CBEX is not a registered operator. This places the platform in violation of Nigeria’s Investment and Securities Act (ISA 2025), signed into law by President Bola Tinubu earlier this year.

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According to Agama, the new ISA 2025 grants the SEC the authority to prosecute operators of Ponzi schemes and other illicit financial setups, which had previously eluded regulatory clampdown due to legal loopholes.

“Before now, the Commission lacked the legal backing to prosecute these fraudulent schemes. But today, operators of Ponzi schemes face up to 10 years imprisonment and a ₦40 million fine,” the SEC boss stated during a recent television interview.

Agama also took the opportunity to caution celebrities and influencers promoting unregulated tokens and meme coins.

“We must be cautious. Becoming influencers or introducing meme coins that do not benefit the Nigerian public will not be tolerated. We now have the legal teeth to bite,” he said.

Under the ISA 2025, digital asset platforms must be registered with the Commission, and their operations must adhere to transparency, investor protection, and anti-fraud guidelines. This includes combating schemes such as pump-and-dump tokens, unregistered exchanges, and referral-based Ponzi structures.

Agama said the Commission is now fully equipped to clamp down on illegal operators, restore investor confidence, and create a safe financial ecosystem in the country.

“The new law enables us to get the bad guys out of the way. Nigerians can now invest knowing fully well that the SEC has a strengthened mandate to protect them,” he concluded.

The warning comes at a critical time, as digital finance continues to evolve rapidly in Nigeria. The SEC is urging the public to verify platforms via its official registry before committing any funds and to report suspected fraudulent operators to the Commission for prompt action.