The Securities and Exchange Commission (SEC) has said it is powerless to assist the estimated 600,000 Nigerians who collectively lost about ₦1.3 trillion in the recent CBEX investment scam.
Dr. Emomotimi Agama, Director General of the SEC, made this known while addressing inquiries from Sunday Vanguard.
He stated plainly that the Commission was unable to facilitate the recovery of funds lost to the fraudulent scheme.
CBEX, short for Crypto Bridge Exchange, vanished last Monday along with investors’ funds.
The platform, operated under ST Technologies International Ltd, had promised investors a 100% return within 30 days—claims now exposed as fraudulent.
Dr. Agama expressed concern over the scale of the scam and how long it went unnoticed.
“It’s alarming that this could go on without being reported to us early. That’s why we’re intensifying awareness campaigns and urging Nigerians to report suspicious schemes promptly,” he said.
He cautioned the public against falling for investment programs that offer guaranteed or unusually high returns, describing such models as classic hallmarks of Ponzi schemes.
“The Investments and Securities Act 2025 (ISA) provides clear guidelines. When a firm promises unrealistic profits, it should immediately raise red flags,” Dr. Agama noted.
According to preliminary findings, CBEX operated under multiple identities such as Smart Treasure and Super Technology, using aggressive marketing tactics to mislead the public and present itself as a legitimate digital asset trading firm.
However, the SEC confirmed that neither CBEX nor its related entities were registered to operate as a digital asset exchange or to raise capital from the Nigerian public.
Invoking Section 196 of the ISA 2025, the Commission stated it is collaborating with law enforcement agencies to take enforcement action against the promoters and operators of CBEX.
The SEC also reiterated its warning to Nigerians: avoid investment schemes with unrealistic returns and always verify a company’s regulatory status on the Commission’s official website before committing funds.
