The Securities and Exchange Commission (SEC) has declared CBEX, a digital asset trading platform operating in Nigeria, illegal due to its lack of registration with the Commission. This announcement follows widespread concerns over the platform’s operations and users’ inability to withdraw funds.
During a recent virtual engagement on the Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama emphasized that any platform not registered with the SEC is operating unlawfully. Although he did not mention CBEX by name, his remarks were in response to the platform’s activities.
CBEX has been under scrutiny for offering a 100% return on investment within a month and providing referral bonuses, all in USD. These characteristics have raised red flags, with many users suspecting it to be a Ponzi scheme. The situation escalated when users reported being unable to withdraw their funds, leading to fears of the platform’s collapse.
A growing sense of panic has gripped many Nigerian investors who had put their money into CBEX. Numerous users reported that their account balances had suddenly been reduced to zero, leaving them shocked and financially distressed.
This alarming development followed a recent request by the platform for additional deposits, raising further concerns about its legitimacy. Investigations revealed that CBEX has frequently changed its domain name—switching from cbex.cx to cbex8.com in July 2024, cbex9.com in September 2024, cbex-dex.com in November 2024, and cbex39.com as recently as February 2025.
Withdrawals were officially restricted on April 9, 2025, with a message from CBEX claiming that services would resume on April 15, 2025, following a “security breach.” However, many users remain skeptical as rumors of an impending collapse continue to circulate.
Despite previous warnings, investors had remained optimistic, lured by promised bonuses and the hope of quick returns. Some users claim to have invested hundreds of thousands of dollars, with estimates suggesting trillions of naira may now be trapped.
The situation has triggered a wave of frustration and disappointment across social media, as affected individuals express fears of never recovering their investments. For many, including those who committed life savings or borrowed funds, the financial toll is devastating.
In response to these developments, some aggrieved investors reportedly looted CBEX offices in Ibadan and other locations. The SEC has reiterated its commitment to protecting investors and has warned the public against engaging with unregistered digital platforms.
Under the new ISA 2025, the SEC now has enhanced powers to prosecute operators and promoters of illegal investment schemes, including Ponzi schemes, with penalties of up to 10 years in prison and fines of N40 million
