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Nigeria’s Securities and Exchange Commission (SEC) has sounded a stern warning to investors, declaring that any digital asset or investment platform not registered with the Commission is operating illegally. This comes on the heels of the dramatic collapse of CBEX, a digital investment scheme that allegedly defrauded Nigerians of over ₦1.3 trillion.
CBEX, which claimed to be a digital trading platform under the name China Beijing Equity Exchange, became abruptly inaccessible after users reported persistent withdrawal issues, followed by sudden disappearance of account balances. The platform has since disabled its Telegram communication channels and postponed withdrawal processes, offering investors dubious “verification” options—$2,000 returns for a $200 fee, and $1,000 for $100—raising further red flags.
SEC’s Head of External Relations, Efe Ebelo, reiterated the regulatory authority’s stance under the newly signed Investments and Securities Act (ISA) 2025, which empowers the Commission to act decisively against unregistered digital asset exchanges and Ponzi schemes. Quoting SEC Director-General, Dr. Emomotimi Agama, she noted that the Act establishes a robust regulatory framework for digital platforms, enforcing mandatory registration to ensure regulatory compliance and protect investor interests.
According to Dr. Agama, “The ISA 2025 provides the SEC with the tools to combat fraudulent activities like pump-and-dump tokens, illicit digital trading platforms, and non-compliant influencers. Even celebrities must exercise caution; promoting meme coins or unregulated schemes under the guise of innovation is unacceptable.”
He emphasized that the Commission is committed to fostering FinTech innovation and growth, especially within the digital asset ecosystem, but only within the bounds of regulatory technology frameworks. “If it is not registered, it is illegal. The SEC will enforce the law. All participants in the digital investment space must align with the legal requirements,” he added.
Meanwhile, footage circulating on social media shows angry investors storming CBEX’s office in the Oke Ado area of Ibadan, Oyo State. Eyewitnesses reported looting of office furniture and equipment, highlighting the public outrage.
CBEX had gained notoriety by promising a 100% return on investment within just 30 days—a hallmark of high-risk and often fraudulent schemes. Despite branding itself with associations to a legitimate Chinese entity, investigations revealed no link between the Nigerian operation and the authentic China Beijing Equity Exchange. The platform only commenced operations in Nigeria recently, debunking claims of a 2017 establishment.
This case further underscores the need for enhanced compliance monitoring tools, regulatory intelligence, and effective risk mitigation strategies in Nigeria’s evolving digital investment landscape. It also highlights the urgency for public awareness campaigns and compliance training to help investors identify and avoid fraudulent schemes.
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