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The Securities and Exchange Commission (SEC) has announced that Crypto Bridge Exchange, also referred to as CBEX, was never authorized to function as a Digital Assets Exchange in Nigeria.
In a circular dated April 17, 2025, the commission addressed recent media coverage regarding CBEX’s operations, clarifying that the entity, which also operated under names such as ST Technologies International Ltd and Smart Treasure/Super Technology, had misrepresented itself as a digital asset trading platform promising high returns to Nigerian investors.
The SEC explicitly stated that CBEX and its affiliates were not registered to operate within the Nigerian capital market or solicit public investments. Preliminary investigations conducted by the commission indicated that the entity engaged in deceptive promotional tactics to fabricate a false sense of legitimacy.
Related News: CBEX Collapse: Nigeria's largest ponzi scheme leaves millions in financial ruin
CBEX has since failed to fulfill withdrawal requests from investors and has closed its physical locations, leaving numerous victims in distress.
Citing Section 196 of the Investments and Securities Act 2025, the SEC announced intentions to collaborate with relevant law enforcement agencies to take enforcement actions against CBEX, its affiliates, and their promoters.
The commission also released a public advisory, urging Nigerians to steer clear of investment platforms that promise unrealistic returns or employ recruitment-based schemes.
It emphasized the necessity of confirming the registration status of such platforms on the SEC’s official portal at www.sec.gov.ng/cmos prior to investing funds.
SEC Director General, Dr. Emomotimi Agama, declared that the commission was adopting a more robust and coordinated strategy to crack down on unregistered and illegal investment schemes, commonly known as Ponzi schemes.
According to him, the newly enacted Investments and Securities Act, 2025, has significantly enhanced the SEC’s authority to prosecute such fraudulent operations and address regulatory deficiencies, especially in the digital and virtual asset sectors.
Agama reiterated that while the SEC encourages financial innovation, it must take place within a properly regulated framework that prioritizes investor protection and maintains market integrity.
He noted the commission’s previous attempts under the repealed Act to dismantle similar Ponzi schemes, such as Fahmzi Interbiz, whose promoters faced imprisonment for deceiving investors.
Also, the House of Representatives has warned public figures, celebrities, and influencers to refrain from endorsing unregistered investment schemes following the collapse of CBEX.
The lawmakers, in a statement from House spokesman Akin Rotimi, emphasized that under the new Investments and Securities Act (ISA), promoting unregistered investment schemes could result in liabilities against individuals found culpable.
They expressed significant concern over troubling reports about the downfall of CBEX, which allegedly has trapped funds belonging to thousands of Nigerians, with financial losses estimated to surpass N1.3 trillion.
