The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, declaring that all investment and digital asset platforms not registered with the Commission are operating illegally. The warning comes amid the alleged collapse of digital investment platform CBEX, which has reportedly left investors with losses exceeding N1.3 trillion. According to reports, users of the CBEX platform began experiencing persistent withdrawal failures, which were soon followed by sudden account balance wipes. The platform later became completely inaccessible. CBEX has since locked its Telegram channels and announced a verification process offering investors a so-called lifeline of $2,000 for $200 verification and $1,000 for $100 verification, a move that has further drawn suspicion. When contacted, the SECs Head of External Relations, Efe Ebelo, cited the provisions of the newly signed Investments and Securities Act 2025 as empowering the Commission to respond decisively to situations involving unregistered investment activities. Ebelo quoted SEC Director-General Dr. Emomotimi Agama, who noted that the Act clearly outlines registration requirements and regulatory standards for digital asset platforms, designed to enhance transparency and protect investors. Agama warned against illicit financial activities, including Ponzi schemes, unregistered exchanges, and misleading tokens. He also cautioned celebrities against using their influence to promote unregulated or potentially harmful financial products, stating that such conduct would not be tolerated. According to him, while the new law is meant to foster innovation and growth in financial technology, it demands full compliance. If it is not registered, it is illegal. The law will be enforced, the SEC stated. The CBEX debacle has sparked public outrage, with videos circulating on social media showing a group of individuals storming the platforms office in the Oke Ado area of Ibadan, Oyo State. Witnesses said angry investors looted the premises, carting away furniture and other equipment in response to their vanished investments. CBEX, an acronym for China Beijing Equity Exchange, had promised investors 100 percent returns within 30 days. Despite its name, investigations revealed that the platform had no affiliation with the real Chinese entity and only began operations in Nigeria in 2024, contrary to claims of having existed since 2017. The SEC's warning underscores the growing urgency to regulate the digital investment space in Nigeria, as more citizens fall victim to fraudulent schemes disguised as legitimate opportunities.Source: Linda Ikeji Blog š
0 Comments