SEC Vows Crackdown on CBEX Promoters Over Cryptocurrency....

Samuel Mobolaji

The Securities and Exchange Commission (SEC) has pledged to take decisive enforcement action against the promoters and affiliates of Crypto Bridge Exchange (CBEX), an unlicensed cryptocurrency investment scheme that has defrauded unsuspecting Nigerians.

In a statement on Thursday, the Commission clarified that neither CBEX, its affiliates nor its promoters were registered to operate as a digital asset exchange or solicit investments in Nigeria. The entity, which also trades under the name ST Technologies International Ltd and Smart Treasure/Super Technology, lured investors with promises of high returns but failed to honour withdrawal requests and abruptly shut its offices.

SEC revealed that preliminary investigations found CBEX engaged in aggressive promotional campaigns designed to give a false impression of legitimacy and security, enticing the public to invest with the promise of implausible guaranteed returns within 30 days.

“The Commission will collaborate with relevant law enforcement agencies to take appropriate enforcement action against CBEX, its affiliates and promoters, pursuant to the Investments and Securities Act 2025,” SEC stated.

The Commission warned the public to avoid investment platforms promising unrealistic returns or operating recruitment-based models and urged investors to verify the registration status of such firms via its website.

The fraudulent scheme collapsed on Monday, leaving thousands of investors stranded after the platform restricted withdrawals on April 9. Before shutting down, CBEX had asked subscribers to make additional deposits — ranging from $100 to $200 — under the pretext of account verification, a final act that deepened investor losses.

Earlier, the House of Representatives warned public figures, celebrities and influencers against endorsing unregistered investment schemes, while the Economic and Financial Crimes Commission (EFCC) vowed to recover stolen funds in collaboration with Interpol and international partners.

CBEX, reportedly run by foreign nationals in partnership with Nigerian collaborators, left a trail of financial losses as investors who had hoped for 100 per cent returns saw their account balances wiped out overnight.