The Securities and Exchange Commission (SEC) has issued a strong warning to the Nigerian public regarding Crypto Bridge Exchange (CBEX), a digital trading platform operating illegally in the country.
In a formal statement released on Thursday, April 17, the Commission clarified that CBEX is not registered or licensed to operate as a digital asset exchange in Nigeria.
According to the SEC, CBEX, which also operates under aliases such as ST Technologies International Ltd and Smart Treasure/Super Technology, has been illegally soliciting investments by offering unrealistic and deceitful returns—claiming investors could earn up to 100% Return on Investment (ROI) within 30 days.
The Commission emphasized that CBEX and its affiliates have never received authorization to conduct any form of capital market activity in Nigeria, including investment solicitation or crypto exchange services.
Fraudulent Activity and Investigation Underway
The SEC revealed that CBEX is currently under investigation for various violations, including misrepresentation, fraudulent practices, and failure to honor withdrawal requests from users. Some affected investors have reported falsified withdrawal records, with the platform allegedly fabricating data to cover up liquidity issues.
In a bid to evade accountability, the platform has reportedly shut down its physical offices, leaving many investors stranded and unable to recover their funds. Preliminary findings also show that CBEX carried out aggressive promotional campaigns designed to present the operation as legitimate, further luring unsuspecting victims.
SEC to Enforce New Powers Under ISA 2025
Citing Section 196 of the newly enacted Investments and Securities Act (ISA) 2025, the SEC announced that it will collaborate with relevant law enforcement agencies to enforce legal actions against CBEX, its operators, and promoters.
The Commission’s Director-General, Emomotimi Agama, stated that CBEX’s promoters will be held accountable under the new regulatory framework, which grants the SEC broader powers to tackle unregistered and fraudulent investment schemes, including those operating in the digital and virtual asset space.
“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 that while the SEC remains committed to encouraging financial innovation, all such activities must occur within a properly regulated environment that safeguards investor interests and upholds market integrity.
Federal Government Backs SEC, Warns Against Ponzi Schemes
The Federal Government has also weighed in on the situation, expressing solidarity with victims of the CBEX scheme. In a statement issued Wednesday, it emphasized the urgent need for Nigerians to remain vigilant and unite against the rising tide of Ponzi schemes and fraudulent digital platforms in the country.
The SEC concluded its advisory by warning the public to avoid investing in entities that promise guaranteed or unusually high returns, especially those operating without regulatory approval.
