In response to the activities of CBEX, a digital asset trading platform in Nigeria, the Securities and Exchange Commission (SEC) declared that any platform of that kind that is not SEC-registered is unlawful.
This coincides with reports that the sites will be shut down since users were unable to withdraw their money over the weekend. The SEC’s Director General, Emomotimi Agama, cautioned Nigerians against using unregistered platforms during a virtual meeting with fintech stakeholders on Monday over the Investment and Securities Act (ISA 2025).
According to him without specifying a platform: “Very recently, there has been a post that has gone viral around a particular platform and the activities of such platforms. And of course, the aftermath of it is further news of their closure and all of that.
“In fact, I was tagged in one of those messages. I want to state it very clearly. If it is not registered, it is illegal,” Agama added.
Concerns regarding CBEX’s activities caused social media to go crazy on Friday, with several people warning that it appears to be a Ponzi scheme. There are worries that the system may have crashed because some users were unable to withdraw. Although withdrawals were currently prohibited under the company’s rules and regulations, some users maintained that the platform was still operational.
Continuing, with “investments” only in USD, CBEX prides itself on being an investment platform that offers users a 100% return on investing in just one month. Referral bonuses are also given to users. Searches of the SEC database, however, verify that CBEX is not registered with the Commission.
Speaking on the terms of the Investment and Securities Act (ISA 2025), which President Bola Tinubu recently signed, the SEC DG stated that the Act has set clear guidelines for digital asset platforms, including the need for registration to foster trust and transparency. It said that this makes the investing environment safer by enabling the SEC to take action against illegal practices like pump-and-dump tokens, Ponzi schemes, and unregistered exchanges.
According to him: “It is important that even for celebrities, we must be cautious around what we do. Becoming influencers or introducing meme coins, that does not mean well for the generality of Nigerians, are not going to be tolerated.”
