The House of Representatives on Thursday has cautioned public figures, celebrities and influencers against promoting unregistered investment schemes amid the collapse of a fraudulent cryptocurrency investment scheme known as “CBEX”.
The lawmakers, in a statement by Rep. Akin Rotimi, Jr., Spokesman, House of Representatives, highlighted that under the new Investments and Securities Act(ISA), promoting unregistered investment schemes could attract liability against any of them found wanting.
They expressed deep concern over alarming reports on the collapse of CBEX, which has reportedly trapped funds belonging to thousands of Nigerians, with financial exposure estimated to exceed N1.3 trillion.
Nairametrics previously reported that the Securities and Exchange Commission (SEC) had reacted to the operations of CBEX, a digital asset trading platform in Nigeria, saying any such platform not registered with the SEC is illegal.
Recently, the Economic and Financial Crimes Commission (EFCC) reacted to the development, vowing to recover Nigerians’ lost investments through collaboration with Interpol and other international agencies.
Reps’ Highlights: Powers of ISA
- Highlighting the legal requirements in the ISA, the House underscored the importance of the recently enacted Investment and Securities Act (ISA), 2025, signed into law by His Excellency, President Bola Ahmed Tinubu, GCFR.
- They added that the landmark legislation, resulting from sustained legislative efforts across the 8th, 9th, and 10th Assemblies, strengthens the SEC’s enforcement powers, criminalises Ponzi schemes and related frauds, and introduces stricter penalties, including up to ten years’ imprisonment.
“Through these reforms, the investor protection responsibility of the SEC has been enhanced, reinforcing its mandate to shield Nigerians from fraudulent investment activities,” the House emphasised.
- The House advised Nigerians to exercise utmost caution and verify all investment opportunities with the SEC and other regulators.
“Citizens must remain vigilant to the hallmarks of fraud, especially promises of high returns with little or no risk.
“Furthermore, public figures, celebrities, and influencers are reminded of their civic and legal duties.
“Under the new ISA, promoting unregistered investment schemes could attract liability for aiding financial misrepresentation and consumer deception,” the statement partly reads.
- The House also called on schools, faith-based organisations, media outlets, and civil society groups to support a national effort to promote financial education and protect the public from predatory schemes.
“We must continue to confront financial fraud with the full weight of the law. But beyond enforcement, we must invest in public awareness. Financial literacy is not optional; it is essential in building a resilient, inclusive economy. Fraudsters thrive where ignorance prevails,” Chairman of the House Committee on Capital Market and Institutions, Rep. Solomon T. Bob (PDP, Rivers), remarked in the statement.
- The House extended heartfelt empathy to citizens currently facing distress and uncertainty due to their involvement in the investment scam.
- The House noted that the EFCC and the Nigeria Police Force have already commenced coordinated investigations, working in concert with Interpol to track the perpetrators, safeguard investors, and recover withheld funds where possible.
What you should know
CBEX is a digital investment platform operated by a group of foreign nationals in partnership with Nigerian collaborators that reportedly collapsed on Monday, leaving thousands of investors stranded and unable to access their funds.
The platform, which had promised 100% returns within 30 days through online trading, first restricted withdrawals on April 9, 2025. Many users initially believed the issue was a temporary glitch—until their account balances suddenly vanished.
In a surprising twist, affected users were instructed to deposit additional funds—at least $100—in order to regain access to their accounts. For those with balances above $1,000, the required deposit was set at $200.
Shortly before shutting out its subscribers, CBEX issued a message stating:
“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required. Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews.”
Despite signs of trouble, several new users reportedly signed up after the withdrawal restriction, believing it was a technical delay that would be resolved within days.
