CBEX, other unregistered platforms are illegal, SEC warns Nigerians

• Published On: 15 April 2025 at 19:18

Regarding CBEX, a digital asset trading platform, the Securities and Exchange Commission of Nigeria has made it clear that any platform that operates without registration is unlawful.

This announcement comes after users complained that they couldn't access or withdraw their money over the weekend, and there were rumours that CBEX and related sites might have been shut down.

The SEC's Director General, Emomotimi Agama, cautioned Nigerians against using unregistered digital asset platforms during a virtual meeting with fintech stakeholders on Monday over the Investment and Securities Act (ISA 2025).

There was a post on a specific site and its activities that went popular quite recently. Naturally, the fallout from it includes further information on their shutdown and other related topics.

Actually, one of those mails included a tag for me. I want to be very clear about it. Without specifically referring to the site, Agama said, "It is illegal if it is not registered."

Concerns about CBEX's operations were widely expressed on social media on Friday, with some users raising the alarm that it might be a Ponzi scheme.

Users' complaints of not being able to withdraw their money caused panic and raised concerns that the platform might have crashed.

Some users, however, insisted that the platform was still up and running, stating that withdrawals were momentarily prohibited because of its stated policies.

With all transactions made in USD, CBEX positions itself as an investment platform that guarantees a 100% return on investment within a month. Additionally, those who introduce new investors can receive referral bonuses.

The SEC Director-General underlined that the Investment and Securities Act (ISA 2025), which was recently approved by President Bola Tinubu, clearly lays out guidelines for digital asset platforms.

In order to promote a safer investment environment, the SEC claims that this enables the Commission to fight against illegal activities such as pump-and-dump tokens, Ponzi schemes, and unregistered exchanges.

“It is important that even for celebrities, we must be cautious around what we do. He cautioned, "We will not tolerate becoming influencers or introducing meme coins that are detrimental to the majority of Nigerians."

As previously reported, the ISA 2025 has given the SEC the authority to bring charges against those who promote Ponzi schemes in the nation.

The SEC Director-General noted in a recent television interview that it was challenging to prosecute Ponzi scheme operators prior to the new law since the Commission lacked the legal ability to do so.

According to Agama, Nigerian Ponzi scheme operators now risk up to 10 years in prison and a fine of N40 million if they are detected operating a scam.

He went on to say that the law gives the Commission the tools it needs to stop scammers and help Nigerians.