The Federal Government, through the Securities and Exchange Commission (SEC), has issued a strong warning to Nigerians against patronizing unregistered digital investment platforms, following growing concerns over the reliability of such schemes.
This alert comes in the wake of widespread reports that users of one such platform, CBEX, were unable to withdraw their funds over the weekend, fueling fears that the platform may have crashed.
Speaking during a virtual engagement with fintech stakeholders on the proposed Investment and Securities Act (ISA 2025) on Monday, SEC Director General, Dr. Emomotimi Agama, cautioned the public against falling victim to fraudulent schemes disguised as legitimate investment platforms.
“There’s been a viral post recently concerning a particular investment platform and subsequent news of its alleged shutdown. I want to make it clear: if a platform is not registered with the SEC, it is illegal,” Agama stated, without naming CBEX directly.
The warning follows a social media uproar on Friday, with many users labeling CBEX a Ponzi scheme due to its high returns and current withdrawal restrictions.
CBEX reportedly promises users a 100% return on investment within one month, with transactions conducted exclusively in U.S. dollars. The platform also incentivizes users with referral bonuses—a common feature of Ponzi operations.
While some users claimed the platform was still operational, others expressed concern over frozen accounts and delayed withdrawals, which the platform allegedly attributes to internal rules and processes.
Agama reiterated that Nigerians should verify any investment platform with the SEC before committing funds, stressing that the commission is committed to protecting investors and maintaining market integrity.
