CBEX: SEC Speaks On Ponzi Schemes In Nigeria Amidst Withdrawal Concerns, Closure Rumours

The Securities and Exchange Commission (SEC) has addressed growing unease surrounding the operations and activities of unregistered digital platforms in Nigeria.

This comes on the heels of growing concerns about one of such platforms, identified as CBEX, which is a digital asset trading platform operating in Nigeria.

SEC affirmed that any such platform not officially registered with the Commission is deemed illegal.

Naijaonpoint reports that this clarification follows widespread speculation that CBEX may have shut down after multiple users reported difficulties withdrawing funds over the weekend.

During a virtual session on Monday with fintech stakeholders to discuss the newly signed Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama issued a clear warning to Nigerians against engaging with unregistered investment platforms.

“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 declared, without naming CBEX directly.

Mounting Anxiety Over CBEX

On Friday, social media platforms lit up with discussions about CBEX, with many users raising red flags and comparing its operations to a Ponzi scheme.

The main trigger was users’ inability to make withdrawals—leading to growing fears that the platform might have collapsed.

Nonetheless, a segment of users maintain that CBEX remains active, attributing the withdrawal issues to its internal policies and terms of use.

CBEX markets itself as an investment opportunity offering users an eye-popping 100% return within 30 days. Investments are made exclusively in U.S. dollars, and users also earn bonuses through referrals.

According to Naijaonpoint, a search through the SEC’s public database confirms that CBEX is not registered with the Commission, fuelling further suspicion.

SEC to Clamp Down on Unregulated Activities

With the introduction of the ISA 2025, recently signed into law by President Bola Tinubu, the SEC now has expanded authority to regulate and take action against digital asset operators who fail to comply with registration requirements.

According to Agama, the new law provides “clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.”

He explained that this framework will enable the Commission to crack down on fraudulent practices such as Ponzi schemes, unregistered exchanges, and misleading token promotions.

“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,” he added.

Key Takeaways for Investors

Previously, the SEC was limited in its ability to take legal action against Ponzi scheme promoters due to regulatory gaps. However, Agama explained during a recent TV interview that the ISA 2025 has equipped the Commission with the legal tools it needs to prosecute such offenders.

With the new legal framework in place, Ponzi scheme operators now face a prison sentence of up to 10 years and a fine of N40 million upon conviction.

Agama expressed confidence that the enhanced powers will allow the SEC to take decisive action against fraudulent schemes, stating the Commission is committed to removing harmful actors from the financial space and restoring investor confidence.

“This would also allow the Commission to get the ‘bad guys’ out of the way and making sure that people are more confident and happier to invest in the Nigerian market knowing fully well that the investor protection responsibility of the SEC has now been enhanced,” he concluded.