The Securities and Exchange Commission (SEC) has taken a firm stance against the promoters of Crypto Bridge Exchange (CBEX), a digital asset platform accused of defrauding Nigerian investors of over N1.3 trillion. According to a statement released on Thursday, CBEX and its affiliates were never licensed to operate within Nigeria’s capital market. Instead, the platform lured unsuspecting investors by masquerading as a legitimate trading hub under various names such as ST Technologies International Ltd, Smart Treasure, and Super Technology, all while promising exorbitant and unrealistic returns.
SEC’s Director General, Emomotimi Agama, emphasized that justice will be served, leveraging the newly enacted Investments and Securities Act, 2025 (ISA 2025), which strengthens the Commission’s legal framework for prosecuting financial crimes. Preliminary investigations revealed that CBEX employed deceptive promotional strategies, giving off a false sense of credibility. As complaints mounted, the platform reportedly stopped honoring withdrawal requests and shut down its offices, leaving investors stranded.
Citing Section 196 of the ISA 2025, the SEC announced its intent to partner with law enforcement to launch enforcement actions against the platform’s operators. The Commission also warned the public against investing in schemes offering too-good-to-be-true returns or using recruitment-based models. It urged investors to verify the registration status of any investment platform through the Commission’s official channels before committing funds.
Agama highlighted that while the SEC welcomes innovation in the financial sector, it must occur within a properly regulated framework. He noted that the ISA 2025 equips the Commission with broader powers to take swift action against fraudulent platforms, including those operating in the digital asset and online forex space. With this enhanced authority, the SEC aims to bolster investor protection, ensure accountability, and prevent similar schemes from gaining ground in Nigeria’s evolving capital market.
Source: the sun