CBEX: SEC Seeks Jail Term for Celebrities Promoting Ponzi Schemes, Dubious Investments

In a statement made available to the press on Sunday, the commission stated that those who promote such schemes risk legal consequences.

The warning comes following the enactment of the Investments and Securities Act 2025, signed into law by President Bola Tinubu.

Explicitly defining Ponzi schemes, the new law empowers the SEC to impose a minimum fine of N20 million and a jail term of 10 years on promoters of such schemes.

SEC’s Director-General, Mr Emomotimi Agama, who spoke on the provisions of the new law, said the regulator was collaborating with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other law enforcement agencies to investigate and prosecute violators.

“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment.

“We are therefore using this medium to warn such persons to desist from promoting unregistered entities,” Mr Agama stated.

He added that following the collapse of CBEX, a digital investment platform that allegedly defrauded Nigerians over billions, the SEC has intensified its crackdown on Ponzi operators.

“We will shut down their operations and the promoters will be made to face the full weight of the law,” he said.

Business Post reports that celebrities and influencers are often major promoters of these schemes and in the past many of them have put Nigerians at losses. One such prominent case was Racksterli, founded by Mr Michael Chidiebere Oti known as Black Gold and was promoted by top Nigerian musicians and actors which promised high return of up to 40 -50 per cent monthly.

However, the platform collapsed in 2021, leaving many investors without their capital or promised returns.

At that time, affected individuals called for the arrest of these celebrities for their roles in endorsing the Ponzi scheme.