The Securities and Exchange Commission (SEC), on Thursday, has disclosed it will collaborate with law enforcement agencies to take appropriate enforcement action against fraudulent cryptocurrency investment scheme known as “CBEX”, its affiliates and promoters.
The Commission clarified it did not grant registration to Crypto Bridge Exchange)CBEX or its affiliates to operate in Nigeria.
SEC made the clarification in a statement on Thursday, in response to recent media reports/publications on the activities of CBEX (Crypto Bridge Exchange), CBEX, which reportedly also operates under the corporate identity of ST Technologies International Ltd, Smart Treasure/ Super Technology.
SEC Clarifies
SEC noted media reports which states that CBEX and its affiliates has held itself out as a digital asset trading platform, offering high returns to investors in Nigeria.
The Commission denied granting a registration license to either CBEX or any of its affiliates.
“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 statement partly reads.
- According to SEC, 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 has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints,” the Commission added.
- Pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission promised to “collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters.”
- The Commission reminded the public to refrain from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models.
- Prospective investors were advised to verify the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.
What to know
Nairametrics earlier reported that the House of Representatives on Thursday cautioned public figures, celebrities, and influencers against promoting unregistered investment schemes amid the collapse of a fraudulent cryptocurrency investment scheme known as “CBEX”.
- 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.
- 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.
