The Securities and Exchange Commission (SEC) has declared that Crypto Bridge Exchange, popularly known as CBEX, is not registered to operate as a digital assets exchange in Nigeria, warning the investing public against transacting with the platform.
In a circular issued on Thursday, the commission stated that CBEX, operating under various aliases such as ST Technologies International Ltd and Smart Treasure/Super Technology, had engaged in unauthorised investment solicitation, offering implausibly high returns to unsuspecting Nigerians.
“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,” the SEC stated.
CBEX is a digital trading asset platform that gives investors a 100 per cent return on investment in 30 days.
However, its operational paradigm is now under examination as claims of fraud and fraudulent activities surface.
The platform is claimed to display fake withdrawal records to hide the problems users face when attempting to retrieve their money.
According to the capital market regulator, preliminary investigations found that CBEX engaged in promotional operations designed to provide a false sense of legitimacy.
The company allegedly enticed investors with the promise of guaranteed high profits, failed to respect withdrawal requests, and has now closed its physical offices due to mounting complaints.
The commission stated that under Section 196 of the Investments and Securities Act 2025, it will work with relevant law enforcement agencies to take enforcement action against CBEX, its affiliates, and promoters.
The SEC also warned the public against investing in businesses that promise unrealistic returns or run unregistered digital investment schemes.
According to the release, SEC Director-General Emomotimi Agama stated the agency is beginning a stronger and more coordinated enforcement regime against illicit and unregistered investment schemes, sometimes known as Ponzi schemes.
He stated that the newly approved Investments and Securities Act 2025 gives the SEC greater authority to prosecute operators of such scams, particularly those involving digital and virtual assets.
“Promoters of CBEX will not go scot-free. The new law gives the Commission the legal backing to protect investors and restore market confidence,” Agama stated.
He stressed the SEC’s commitment to supporting innovation in financial services but emphasised that all innovations must occur within a regulated environment that prioritises investor protection and market integrity.
Chronicle NG reported that the Federal Government sympathised with victims of the digital investment platform CBEX on Wednesday, stressing that Nigerians must work together to end the rise of Ponzi schemes in the country.
