The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians, declaring that all investment and digital asset platforms not registered with the Commission are operating illegally. The announcement follows the alleged collapse of CBEX, a digital investment platform that reportedly cost investors over N1.3 trillion in losses.
CBEX users began reporting persistent withdrawal failures, after which account balances were abruptly wiped. The platform has since become inaccessible, locked its Telegram channels, and postponed withdrawals. It offered a so-called “lifeline” of $2,000 for a $200 verification fee and $1,000 for $100—moves that many see as further exploiting already defrauded investors.
The SEC’s Head of External Relations, Efe Ebelo, confirmed that the newly signed Investments and Securities Act (ISA) 2025 empowers the Commission to take firm action against such platforms. Quoting the SEC Director-General, Ebelo said the Act introduces enforceable regulations for digital asset operations and mandates platform registration to foster transparency and investor confidence.
According to the SEC, the ISA 2025 is designed not only to enable innovation and growth in Nigeria’s digital financial space but also to guard against criminal activities like Ponzi schemes, pump-and-dump token scams, and unlicensed exchanges. Ebelo stressed that platforms not registered with the SEC are operating outside the law and will be sanctioned.
She added that the SEC will also scrutinize celebrity involvement in promoting unregulated crypto assets or meme coins, which can mislead the public and endanger financial stability. “We must be cautious about what we do. Introducing meme coins that do not mean well for Nigerians is not going to be tolerated,” she stated.
Meanwhile, tensions escalated in Ibadan, Oyo State, where a viral video on Tuesday showed angry individuals storming the CBEX office in Oke Ado. Eyewitnesses confirmed that the mob broke into the premises and carted away furniture and other equipment.
CBEX had claimed to offer a 100 percent return on investment within 30 days and introduced itself as a branch of the China Beijing Equity Exchange. However, investigations revealed no ties to the legitimate Chinese institution, and its actual operations in Nigeria only began recently, debunking its claim of existing since 2017.
The SEC is urging Nigerians to verify the registration status of any digital investment or asset platform before committing their money, warning that failure to comply with the new law will be met with full regulatory force.
