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Daniel Adaji
The Securities and Exchange Commission (SEC) has accused Crypto Bridge Exchange (CBEX) of operating an illegal investment scheme that misled thousands of Nigerians with fake promises of high returns.
The SEC revealed on Thursday that CBEX used aggressive promotional campaigns, including paid advertisements on popular radio stations, to present itself as a legitimate digital asset exchange, despite never receiving registration or approval to operate in Nigeria.
CBEX, now under investigation, has allegedly closed its offices and cut off all communication after failing to process withdrawal requests from its subscribers. Nigerians reportedly lost no less than N1.3tn to the illegal investment scheme.
According to the Commission, the platform, which also operated under names like ST Technologies International Ltd and Smart Treasure/Super Technology, promised implausible returns within short periods to lure unsuspecting investors.
“The Commission hereby clarifies 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 SEC said.
The SEC warned that CBEX’s actions violate the newly enacted Investments and Securities Act (ISA) 2025, which strengthens the Commission’s powers to prosecute financial crimes. Section 196 of the Act empowers the SEC to collaborate with law enforcement in cracking down on unlicensed investment operations.
Thousands of Nigerians are believed to have lost millions of naira to the fraudulent scheme. Some victims say they were convinced to invest after hearing promotional jingles and interviews with CBEX representatives aired on regional radio stations, particularly in the North-Central and South-West zones.
Investigations are ongoing, and the Economic and Financial Crimes Commission (EFCC) has confirmed it is working with INTERPOL to track and arrest CBEX’s promoters, many of whom are suspected to have fled the country.
Director General of the SEC, Dr. Emomotimi Agama assured the public that the perpetrators will be held accountable.
“With the ISA 2025, the Commission now has 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 forex platforms,” Agama said.
He emphasised that while innovation in digital finance is welcome, it must occur within a regulated environment.
“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama said.
Agama also recalled that even under the previous legislation, the SEC had shut down multiple Ponzi schemes, with some promoters jailed. The new Act, he said, closes legal loopholes and reinforces enforcement efforts.
The SEC urged the public to verify the registration status of investment platforms via its official portal – www.sec.gov.ng/cmos – before engaging in any transactions.
A Digital Assets Exchange is a platform that allows users to buy, sell, or trade cryptocurrencies and other digital tokens. In Nigeria, such platforms must be registered with the SEC to operate legally.