The Securities and Exchange Commission (SEC) has declared that any digital asset trading platform operating in Nigeria without registration is illegal. This includes CBEX, currently under scrutiny over users’ inability to access their funds.
Amid widespread social media concerns and allegations of CBEX operating as a Ponzi scheme, SEC Director General Emomotimi Agama, during a virtual session with fintech stakeholders, emphasized the Commission’s stance: “If it is not registered, it is illegal.” Though he did not name CBEX directly, his remarks coincided with growing user complaints of withdrawal restrictions.
CBEX claims to offer a 100% return on investment in one month, USD-only transactions, and bonuses for referrals. Despite user defenses that the platform is still active, it remains unregistered, according to SEC’s official database.
The SEC cited the newly signed Investment and Securities Act (ISA 2025) as a critical tool for regulating digital platforms and protecting investors. The Act empowers the Commission to clamp down on unregistered exchanges, Ponzi schemes, and manipulative assets like pump-and-dump tokens.
Agama also issued a warning to celebrities promoting unverified coins or platforms, asserting such actions won’t be tolerated under the new law. The ISA 2025 now grants the SEC prosecutorial authority, with Ponzi scheme operators facing up to 10 years in jail and N40 million in fines.
The Commission reaffirmed its commitment to eliminating fraudulent operators and restoring investor confidence in Nigeria’s capital market.
Source: Swifteradio.com
