The Securities and Exchange Commission (SEC) says preliminary investigations revealed that Crypto Bridge Exchange, aka CBEX, engaged in promotional activities to create a ‘false perception of legitimacy’ to entice ‘unsuspecting’ Nigerians.

Daily Trust reports that about N1.3trillion was reportedly wiped out from the investors’ account after the platform, which boasted of giving investors 100 per cent Return On Investment in 30 days crashed on Monday.

The SEC stated that CBEX was not granted registration by the commission at any time to operate as a Digital Assets Exchange.

In a circular dated April 17, 2025, the commission stated that its attention was drawn to recent media reports/publications on the activities of CBEX (Crypto Bridge Exchange).

According to the SEC, “The commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.”

The agency said, “Preliminary investigations carried out by the commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.”

The SEC emphasised that pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the commission would collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters.

“The commission uses this medium to remind the public to REFRAIN from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models.”

The SEC Director General, Dr. Emomotimi Agama, had recently said the commission is launching a more forceful and coordinated enforcement regime against unregistered and illegal “phony” investment schemes, otherwise known as ponzi schemes.

Agama said with the newly enacted Investments and Securities Act, 2025 (ISA 2025), the Commission now has enhanced powers to prosecute Ponzi schemes and their promoters.

He said investigations were ongoing on CBEX, adding that promoters of the failed scheme will not go scot-free.

Agama said the new law has given the commission more powers and blocked loopholes in emerging areas of virtual and digital assets.