CBEX: SEC Goes Tough, To Prosecute Fraudulent Schemes Promoters
Amid ongoing investigations to nab individuals behind the recently collapsed CBEX investment platform, the Securities and Exchange Commission (SEC) has vowed to clamp down on promoters of fraudulent investment schemes, including social media influencers, bloggers, and celebrities who advertise unregistered entities.
In a statement made available to The PUNCH on Sunday, the Commission warned that individuals promoting unregistered investment platforms risk prosecution under the newly enacted Investments and Securities Act 2025, signed into law by President Bola Tinubu.
The Act clearly defines Ponzi schemes and empowers the Commission to impose a minimum fine of N20 million and a jail term of up to 10 years on violators.
Speaking on the new provisions, the SEC’s Director-General, Emomotimi Agama, said that the Commission is working closely with the Economic and Financial Crimes Commission, the Nigeria Police Force, and other law enforcement agencies to investigate and prosecute violators.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities,” Agama said.
He noted that the SEC is intensifying its crackdown on Ponzi operators following the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3tn. CBEX reportedly lured investors with promises of unrealistic returns and false claims of global affiliations.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama stated.
According to the SEC boss, the ISA 2025 also brings digital assets under the regulatory oversight of the commission for the first time. He said virtual assets are now officially recognised as securities, and as such, Virtual Asset Service Providers and Digital Asset Exchanges are mandated to register with the SEC and comply with relevant rules.
Agama emphasised that education remains a key part of the SEC’s strategy to protect Nigerian investors. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he said, adding that the commission is also pushing capital market education into schools and universities.
The commission advised the public to always verify the registration status of any investment scheme with the SEC before parting with their funds. “Once it is too good to be true, it certainly is not true,” he warned.
He also revealed that the SEC has established specialised departments to monitor market activities, conduct inspections, and detect early signs of fraud. “We have a monitoring department. We also do onsite inspections. Once we hear anything, we do something,” he said.
Agama reiterated the SEC’s commitment to investor protection and market development. “The capital market helps you to democratise wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market,” he said.
OSUN DEFENDER reported that the Securities and Exchange Commission has issued a fresh warning to Nigerians, declaring that all investment and digital asset platforms not registered with the Commission are operating illegally.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
