Nigeria’s Securities and Exchange Commission has renewed its caution to citizens, declaring that all investment and digital asset platforms not registered with the commission are operating unlawfully.
This advice follows the alleged collapse of crypto trading platform CBEX, which reportedly left investors with losses exceeding ₦1.3 trillion.
The platform faced intense backlash after users encountered prolonged withdrawal disruptions, culminating in the sudden erasure of account balances.
CBEX subsequently disabled its Telegram channels and postponed its withdrawals while giving investors the lifeline of $2,000 for $200 verification and $1,000 for $100 verification.
The Head of External Relations, SEC, Nigeria, Efe Ebelo, emphasized that the provisions of the newly signed Investments and Securities Act 2025 enable the Commission to act decisively in matters like this.
Quoting the SEC Director-General, Dr. Emomotimi Agama, Ebelo stated the Act has established clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.
This, he said, “equips the SEC to crack down on illicit activities, such as Ponzi schemes, pump and dump tokens, and unregistered exchanges, creating a safer environment for investors. It is important that, even for celebrities, we must be cautious about what we do. Becoming influencers or introducing meme coins that do not mean well for the generality of Nigerians is not going to be tolerated.
The ISA 2025 aims to promote FinTech growth and innovation, specifically within the digital asset space, while ensuring regulatory compliance. However, I want to say this very clearly: if it is not registered, it is illegal. The law will be enforced. Therefore, everyone who is going to be involved in this space must endeavor to fulfill the requirements of the law.”
CBEX promised investors a 100 percent return on investment within 30 days. CBEX, which stands for China Beijing Equity Exchange, was a digital asset trading platform that gained prominence in Nigeria in 2024.
Reports have it that the digital platform had no connection to the real Chinese entity and began operations in Nigeria only recently, not in 2017 as it claimed earlier.
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