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The Securities and Exchange Commission (SEC) has warned the public about the dangers of using unregistered digital investment platforms, following a social media uproar surrounding CBEX, a platform accused of freezing customer withdrawals and offering unusually high returns. CBEX, which promises 100% returns on USD-denominated investments in just one month, along with referral bonuses, isn’t registered with the SEC, raising significant concerns.

SEC Director-General Emomotimi Agama emphasised that platforms operating without regulatory oversight are illegal. “Very recently, there has been a post that has gone viral around a particular platform and the activities of such platforms… If it is not registered, it is illegal,” Agama stated firmly during a virtual session on the newly enacted Investment and Securities Act (ISA 2025).

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The ISA 2025 sets clear guidelines for digital asset platforms, requiring registration to foster confidence and transparency. This empowers the SEC to crack down on illicit activities like Ponzi schemes, pump and dump tokens, and unregistered exchanges. Agama warned that the SEC can now investigate and shut down unlicensed platforms, as well as prosecute influencers and celebrities promoting suspicious schemes

“We must be cautious around what we do. Becoming influencers or introducing meme coins – that does not mean well for the generality of Nigerians and is not going to be tolerated,” Agama cautioned.

Financial analyst Chuka Obioha described the situation as a “wake-up call”. “When people hear 100 per cent returns in 30 days, that should raise immediate red flags. These schemes rely on a steady stream of new deposits to pay earlier investors, and once that flow dries up, they collapse.”

Experts warn that Nigeria’s fintech boom has created a regulatory grey area, allowing fraudsters to exploit trust and lack of oversight. The SEC advises investors to verify the registration status of platforms before investing, highlighting the importance of due diligence to avoid potential risks

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