SEC Declares Unregistered Digital Trading Platforms Illegal, Warns Nigerians
director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama
Samuel Mobolaji
The Securities and Exchange Commission (SEC) has declared that any digital asset trading platform operating in Nigeria without its approval is illegal. The warning follows growing concerns over CBEX, an unregistered platform that has left users unable to withdraw funds, sparking fears of a potential collapse.
SEC Director General, Emomotimi Agama, during a virtual meeting with fintech stakeholders on Monday, urged Nigerians to avoid unlicensed platforms, stressing that the Commission would not tolerate operators who flout the country’s investment laws. Though he did not mention CBEX by name, Agama noted that any platform not registered with the Commission remains unauthorised and unsafe for public investment.
Social media reports had over the weekend raised alarms about CBEX, with users alleging the platform exhibited characteristics of a Ponzi scheme. CBEX, which promises users a 100 per cent return on dollar-based investments within a month and offers referral bonuses, remains unlisted in the SEC’s official database.
The SEC boss explained that the newly signed Investment and Securities Act 2025 now gives the Commission full powers to clamp down on illegal platforms and prosecute Ponzi scheme operators. He also warned celebrities and influencers against endorsing or promoting unlicensed digital schemes, noting such actions would no longer go unpunished.
Read Also: Massive Crash Hits Popular Ponzi Scheme CBEX: Nigerian Investors Suffer Major Losses
Under the new law, anyone found guilty of promoting Ponzi schemes now faces up to 10 years imprisonment and a N40 million fine, a move the Commission says is aimed at cleaning up the market and protecting Nigerian investors.
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