Market News

BY Kayode Tokede

The Securities and Exchange Commission (SEC), yesterday disclosed that its preliminary investigations revealed that Crypto Bridge Exchange also known as CBEX engaged in promotional activities to create a false perception of legitimacy with the aim to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe. 

The commission in a circular also disclosed that CBEX was not granted registration by the at any time to operate as a Digital Assets Exchange.

According to SEC,  CBEX, which also operates under the corporate identity of ST Technologies International Ltd, Smart Treasure/Super Technology, has held itself out as a digital asset-trading platform, offering high returns to investors in Nigeria.

SEC in the circular explained that, “The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.

CBEX has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints.

The SEC emphasised that pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission would collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters.

“The Commission uses this medium to remind the public to REFRAIN from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models. Prospective investors are advised to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them”, the SEC added.

SEC Director General, Dr. Emomotimi Agama, had recently said the Commission is launching a more forceful and coordinated enforcement regime against unregistered and illegal “phony” investment schemes, otherwise known as Ponzi schemes.

Agama said with the newly enacted Investments and Securities Act, 2025 (ISA 2025), the Commission now has enhanced powers to prosecute Ponzi schemes and their promoters.

He said investigations were ongoing on CBEX, adding that promoters of the failed scheme will not go scot-free.

Agama said the new law has given the Commission more powers and blocked loopholes in emerging areas of virtual and digital assets.

“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms,” Agama said.

He said that while the apex capital market regulator would continue to support innovations in finance and investments, the Commission would maintain strict oversight in line with its enhanced investor’s protection mandate.

“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama said.

He recalled that SEC had even with the limited scope of the repealed Act maintained extensive surveillance and was able to shut down a number of Ponzi schemes, with some of the promoters like Fahmzi Interbiz jailed for defrauding Nigerians.

According to him, with the ISA 2025 that gives the Commission more powers to deal with issues, the Commission will ensure that promoters of such schemes are not allowed to operate.