Boma Achenimie 
The Securities and Exchange Commission (SEC) has warned Nigerians against the activities of unregistered digital investment platforms operating in Nigeria.
Warning investors to exercise extreme caution, the Commission, who spoke during a virtual meeting with fintech stakeholders on Monday, said investment platforms operating without registration with the Commission is illegal.
This warning comes amid growing concerns over the fate of CBEX, a digital asset trading platform, following reports from users who have been unable to withdraw funds from the platform since the weekend.
SEC Director General Emomotimi Agama said, “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 said, without mentioning CBEX by name.
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The platform, which promises users returns as high as 100 per cent in just 30 days, has sparked online debate over the past few days, with many comparing its operations to a Ponzi scheme. While some users have claimed the company is still functional, others suspect it has shut down.
Checks by Nairametrics revealed that CBEX is not listed in the SEC’s public database of registered operators, further deepening suspicion.
Agama also pointed to the newly signed Investment and Securities Act (ISA 2025) as a significant step in strengthening the SEC’s ability to crack down on illegal platforms and fraudulent schemes.
“With the new law, there are clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust,” he said.
He also warned influencers and celebrities against promoting unregulated digital assets or schemes, saying the SEC would not hesitate to take action.
“It is important that even for celebrities, we must be cautious around what we do. Becoming influencers or introducing meme coins does not mean well for the generality of Nigerians and is not going to be tolerated,” he added.
Agama noted that the ISA 2025 now empowers the Commission to prosecute Ponzi scheme operators, who, upon conviction, could face up to 10 years imprisonment and a fine of N40m.
He assured investors that the SEC is committed to cleansing the market of fraudulent actors and restoring confidence in the nation’s financial system.
“This would also allow the Commission to get the ‘bad guys’ out of the way and make sure that people are more confident and happier to invest in the Nigerian market, knowing fully well that the investor protection responsibility of the SEC has now been enhanced,” Agama said.
