The Securities and Exchange Commission (SEC) has issued a strong warning to the Nigerian public regarding Crypto Bridge Exchange (CBEX), declaring that the digital asset trading platform is not registered to operate within the Nigerian capital market. The regulatory body emphasized that CBEX and its affiliated companies, including ST Technologies International Ltd and Smart Treasure/Super Technology, are conducting unauthorized investment activities and luring unsuspecting investors with promises of unrealistically high returns.
In a circular released on Thursday, the SEC stated emphatically that CBEX is not licensed to function as a digital assets exchange or solicit investments from the public. The development comes amid growing concerns over fraudulent investment schemes that continue to exploit gaps in financial literacy and digital asset regulation in the country.
“Neither CBEX nor any of its known affiliates has been registered by the Commission to perform any capital market activity,” the circular read.
CBEX gained popularity by promising investors a staggering 100% Return on Investment (ROI) within 30 days, a claim that alarmed financial experts and regulators alike. However, its operations have now come under intense scrutiny following complaints of failed withdrawals, questionable business models, and sudden disappearance from physical locations.
The SEC’s preliminary investigation revealed that CBEX employed aggressive promotional strategies to create a false sense of legitimacy and financial security. These included the presentation of doctored withdrawal proof to convince investors of the platform’s credibility. However, many users have since reported difficulties accessing their funds, raising red flags about the legitimacy of the platform’s claims.
With complaints piling up, the SEC has vowed to collaborate with law enforcement agencies to track down and prosecute the operators and promoters of CBEX. The crackdown will be carried out under the newly enacted Investments and Securities Act (ISA) 2025, which grants the Commission broader powers to tackle unregistered digital investment schemes and Ponzi operations.
Speaking on the matter, the SEC Director-General, Emomotimi Agama, reaffirmed the commission’s zero-tolerance policy toward illegal investment activities that exploit Nigerians.
“Promoters of CBEX will not go scot-free. The new law gives us the authority to protect investors and restore market integrity,” Agama said.
He explained that while the SEC supports innovation in digital financial services, such innovation must take place within a regulated environment that ensures investor protection and sustainable market practices.
In recent years, Nigeria has witnessed a surge in fraudulent investment schemes operating under the guise of cryptocurrency trading and digital asset management. From MBA Forex to Chinmark, and now CBEX, countless Nigerians have lost billions of naira in these schemes, often attracted by the allure of quick wealth.
The Federal Government, through the Ministry of Finance and the SEC, has repeatedly warned Nigerians against participating in unregistered or unregulated financial platforms. Following the CBEX saga, the government also expressed sympathy for victims while calling for a unified national approach to end the growing menace of Ponzi schemes.
Industry experts have welcomed the SEC’s enforcement move, urging the commission to go a step further by launching aggressive public sensitization campaigns across the country. According to them, most victims of fraudulent investment platforms are unaware of basic financial safety principles and regulatory processes.
Financial analyst and fintech consultant, Ayo Oyekan, applauded the SEC’s quick intervention but urged further collaboration with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC).
“Many of these platforms operate across banking, tech, and crypto spaces. There needs to be a consolidated digital financial intelligence unit to track suspicious activities in real time,” he said.
Meanwhile, the SEC has reiterated its call for investors to verify the registration status of any financial platform or investment scheme before putting their money into it. The Commission maintains a public directory of licensed capital market operators available on its website.
As digital finance and cryptocurrency adoption continue to grow in Nigeria, the CBEX case serves as a stark reminder of the dangers of unchecked financial innovation. The SEC says it is determined to create a safer investment environment where technology and regulation work hand in hand to protect Nigerians from financial exploitation.