SEC targets CBEX operators over alleged massive Ponzi fraud in Nigeria

The SEC has confirmed that CBEX, the digital asset trading platform behind a major investment scam, was never authorised to operate in the countryThe platform used deceptive promotions to lure unsuspecting Nigerians, and abruptly shut down after trapping billions of naira in investors’ fundsReacting via a statement, the SEC pledged to collaborate with law enforcement to prosecute CBEX and its promotersLegit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology, Banking and the Economy.

Nigeria’s Securities and Exchange Commission (SEC) has responded to the ongoing concerns surrounding CBEX (Crypto Bridge Exchange), a platform at the centre of a major investment scam that has caused many Nigerians to lose billions of naira.

The Commission revealed that CBEX was never registered or authorised to operate as a Digital Assets Exchange or to raise funds from the public in Nigeria.
Photo credit – SEC, CBEX
Source: UGCCBEX, which also operates under names like ST Technologies International Ltd and Smart Treasure/Super Technology, presented itself as a digital asset trading company, promising investors high returns.

However, the platform recently collapsed, leaving huge sums of investors’ money trapped.

SEC targets CBEX operatorsIn a statement released on Thursday, April 17, 2025, the SEC said it became aware of the platform following widespread media coverage.

The Commission revealed that CBEX was never registered or authorised to operate as a Digital Assets Exchange or to raise funds from the public in Nigeria.

Preliminary findings showed that CBEX used aggressive promotions to appear legitimate and attract unsuspecting investors by offering unrealistic and guaranteed returns in a short time.

This development comes just weeks after the SEC issued a warning to the public about the dangers of Ponzi schemes and listed 58 illegal investment platforms operating across the country.

The recent statement by the SEC read:

“Preliminary investigations carried out by the Commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.”CBEX reportedly stopped processing withdrawal requests from its users and suddenly shut down its physical offices, leading to a wave of complaints from investors.

In response, the SEC announced that it will work with law enforcement agencies to take appropriate legal action against CBEX, its associated companies, and those promoting the scheme, as provided under Section 196 of the Investments and Securities Act 2025.

The Commission also took the opportunity to warn the public against putting money into schemes that promise unusually high returns or rely on referral-based models to attract investors.

The EFCC is working with Interpol and our international development agencies to ensure the operators are brought to book.
Photo credit – @cbex_official
Source: Getty ImagesIt further advised Nigerians to always check whether an investment company is registered by visiting the SEC’s official portal at www.sec.gov.ng/cmos before engaging in any transactions.

Meanwhile, the Economic and Financial Crimes Commission (EFCC) has assured that CBEX investors will get their money back as it is already working with Interpol and our international development agencies to ensure that the operators are brought to book.

FG bans unregistered online Forex platforms, othersIn related news, Legit.ng reported that President Bola Tinubu signed the Investments and Securities Act 2025 into law, introducing several reforms.

In one of these reforms, unregistered online foreign exchange (forex) trading platforms and other online exchanges have been declared illegal.

This is a move aimed at protecting Nigerian investors in the online space and curbing market abuses.

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Source: Legit.ng