Securities and Exchange Commission (SEC) has revealed that Crypto Bridge Exchange (CBEX) engaged in deceptive promotional activities to lure unsuspecting Nigerians into investing in their platform.
CBEX promised implausibly high returns of 100% within 30 days, but the platform collapsed, reportedly wiping out N1.3 trillion from investors’ accounts.
The SEC clarified that CBEX was never registered to operate as a Digital Assets Exchange in Nigeria. Preliminary investigations showed that CBEX created a false perception of legitimacy to attract investments. The commission emphasized that it would collaborate with law enforcement agencies to take enforcement actions against CBEX and its promoters under the Investments and Securities Act 2025.
SEC Director-General Dr. Emomotimi Agama stated that the commission is intensifying efforts to crack down on unregistered investment schemes, commonly known as Ponzi schemes. He assured the public that the promoters of CBEX would face justice and highlighted the enhanced powers granted by the new Investments and Securities Act to regulate virtual and digital assets effectively.
The SEC urged the public to avoid platforms offering unrealistic returns and to verify the registration status of investment schemes before committing funds. This serves as a reminder of the importance of investor vigilance in the face of fraudulent schemes.
