The Securities and Exchange Commission (SEC) has issued a renewed warning to Nigerians, declaring that all investment and digital asset platforms operating without registration from the Commission are doing so illegally. The announcement follows the sudden collapse of the controversial platform CBEX, which reportedly left investors stranded with total losses estimated at over ₦1.3 trillion.
The warning comes as multiple users reported being unable to access their funds on the platform, citing persistent withdrawal failures that eventually escalated into a complete wipeout of account balances. CBEX, a digital asset trading platform that gained swift popularity in Nigeria in 2024, has since shut down its Telegram communication channels and suspended withdrawals. In a final move that many have called dubious, the platform offered “verification” incentives, claiming users could receive $2,000 by paying $200, or $1,000 for a $100 verification fee — a promise many believe is a last-ditch scam attempt.
Despite branding itself as affiliated with the China Beijing Equity Exchange, further investigations revealed that CBEX had no connection to the legitimate Chinese entity. Contrary to its claims of having operated since 2017, reports indicate the platform only recently entered the Nigerian market.
Efe Ebelo, Head of External Relations at the SEC, emphasized that the newly signed Investments and Securities Act (ISA) 2025 has strengthened the Commission’s ability to act decisively against unregulated and deceptive platforms. Ebelo quoted SEC Director-General, Emomotimi Agama, who noted that the law now clearly outlines registration requirements and regulatory frameworks for digital asset platforms, with the aim of promoting transparency, trust, and investor protection.
According to Agama, the ISA 2025 provides legal backing to crack down on illicit operations including Ponzi schemes, unregistered exchanges, and pump-and-dump schemes that have proliferated in the digital finance space. He warned that anyone participating in such schemes including celebrities endorsing questionable tokens or “meme coins” could face consequences under the law. “It is important that even for celebrities, we must be cautious about what we do,” he said, adding that introducing projects that do not serve the interest of Nigerians will no longer be tolerated.
The SEC reiterated that while it remains supportive of innovation and financial technology growth, particularly within the digital asset ecosystem, it will enforce the law firmly. “If it is not registered, it is illegal. The law will be enforced,” Ebelo stressed, calling on all stakeholders in the sector to ensure full compliance with the new regulatory regime.
Meanwhile, the fallout from CBEX’s collapse has triggered chaos in parts of the country. A viral video that circulated online on Tuesday showed angry investors storming the company’s Ibadan office, located in the Oke Ado area of Oyo State. Eyewitnesses said the crowd forcibly entered the premises, carting away office furniture, electronics, and other property. Similar scenes were reported at the platform’s Lagos branch, where dozens of investors turned up in protest.
Law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC) and Interpol, have reportedly launched investigations into the case. Local security outfit Amotekun and the police have since taken control of the Ibadan premises to prevent further unrest.
CBEX had promised its users a staggering 100 percent return on investment within 30 days — a red flag that critics say was ignored by thousands of hopeful Nigerians drawn in by the platform’s rapid growth and aggressive marketing. Analysts now point to the CBEX crisis as a cautionary tale about the dangers of unregulated digital finance in a market where many investors remain vulnerable due to low financial literacy and weak oversight.
As the SEC moves to restore confidence in Nigeria’s capital markets, its message is clear: regulation is no longer optional in the digital asset space — and those who bypass it will face the full weight of the law.
