The Securities and Exchange Commission has declared that Crypto Bridge Exchange, also known as CBEX, is not registered to operate as a digital assets exchange in Nigeria, warning the investing public against transacting with the platform.
In a circular released by the commission on Thursday, it stated that CBEX, operating under various aliases such as ST Technologies International Ltd and Smart Treasure/Super Technology, had been engaging in unauthorised investment solicitation, offering implausibly high returns to unsuspecting Nigerians.
“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 SEC stated.
The PUNCH reported that CBEX is a digital trading asset platform that gives investors a 100 per cent Return On Investment in 30 days.
However, its operational model now comes under scrutiny as allegations of fraud and deceptive practices emerge. The platform is said to display falsified withdrawal records to mask the difficulties users encounter when trying to access their funds.
According to the capital market regulator, preliminary investigations revealed that CBEX carried out promotional activities aimed at creating a false impression of legitimacy. The platform reportedly lured investors with the promise of guaranteed high returns, failed to honour withdrawal requests, and has since shut down its physical offices amid rising complaints.
The commission noted that pursuant to Section 196 of the Investments and Securities Act 2025, it would collaborate with relevant law enforcement agencies to take enforcement actions against CBEX, its affiliates, and promoters.
SEC also warned the public against investing in entities offering unrealistic returns or operating unregistered digital investment schemes.
According to the statement, the SEC Director-General, Emomotimi Agama, said the commission is launching a more robust and coordinated enforcement regime against illegal and unregistered investment schemes, commonly referred to as Ponzi schemes.
He noted that the newly enacted Investments and Securities Act 2025 grants the SEC enhanced powers to prosecute operators of such schemes, including those in the digital and virtual assets space.
“Promoters of CBEX will not go scot-free. The new law gives the Commission the legal backing to protect investors and restore market confidence,” Agama stated.
He reiterated the SEC’s commitment to supporting innovation in financial services but emphasised that all innovations must occur within a regulated environment that prioritises investor protection and market integrity.
The PUNCH reported that the Federal Government sympathised with victims of the digital investment platform CBEX on Wednesday, stressing that Nigerians must work together to end the rise of Ponzi schemes in the country.
