SEC issues fresh warning against Ponzi schemes, urges Nigerians to report illegal crypto investment platforms 

In a public notice released on Thursday, the Commission emphasized the severe risks posed by these illegal investment activities.

The commission stressed the importance of regulatory compliance to safeguard the stability of Nigeria’s capital markets.

The SEC cautioned that fraudulent entities and individuals continue to exploit unsuspecting investors by promoting deceptive investment opportunities that promise high guaranteed returns with little or no risk.

“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, which operate outside regulatory frameworks and lack approval from the SEC,” the Commission stated.

The notice reinforced a critical warning: “If it sounds too good to be true, it likely is.” 

To protect investors, the SEC advised potential stakeholders to conduct thorough due diligence before investing and to verify the registration status of financial firms through the official SEC database: https://sec.gov.ng/cmos.

Furthermore, Section 196(3) of the Investments and Securities Act, 2025 criminalizes the promotion and operation of unregistered investment schemes, making violators subject to severe penalties.

“This violation is punishable upon conviction by a fine of not less than N20 million or a prison term of 10 years, or both,” the Commission warned.

The SEC reaffirmed its dedication to identifying and prosecuting offenders who engage in illegal financial practices.

“We encourage the public to partner with the SEC to safeguard the integrity of Nigeria’s investment environment by promptly reporting suspected illegal investment schemes for investigation and necessary enforcement actions,” the statement concluded.

The Commission’s renewed crackdown on fraudulent investment platforms underscores the critical need for investor awareness, robust regulatory enforcement, and public cooperation in ensuring financial security and trust in Nigeria’s capital markets.

The recent collapse of digital asset trading platform CBEX has reignited urgent calls for stricter government regulation and enforcement.

This failure has sparked widespread outrage and called into question the oversight of government agencies tasked with regulating such platforms.