The U.S. Securities and Exchange Commission (SEC) has addressed uneasiness surrounding the operations and activities of the unregistered digital platform in Nigeria.
This is a close second of increasing concern for one of these platforms, identified as CBEX, a digital asset trading platform operating in Nigeria.
The SEC confirmed that any such platform not formally registered with the Commission is considered illegal.
Naija News The clarification follows widespread speculation that CBEX may have been shut down after multiple users report difficulties withdrawing funds over the weekend, the report said.
Discussing the newly signed investment and securities laws (ISA 2025) at a virtual meeting with fintech stakeholders on Monday, SEC Director-General iMmoometimi name A clear warning was issued to Nigerians to warn of unregistered investment platforms.
“Recently, there was a post that was spread around the activities of a specific platform and such platforms. Of course, its consequences are they shut down and all of this further news. Actually, I’m tagged in one of the messages. I want to state it very clearly. If not registered, it is illegal,” Agama declared that there was no direct name for CBEX.
Anxiety about CBEX is getting higher and higher
On Friday, social media platforms lit up through discussions about CBEX, with many users raising red flags and comparing their operations to the Ponzi scheme.
The main trigger is that users cannot withdraw money, which is an increasing concern about the possible collapse of the platform.
Nevertheless, a group of users believed that CBEX was still active and attributed the withdrawal issue to its internal policies and terms of use.
CBEX uses itself as an investment opportunity, providing users with 100% returns in 30 days. Investment is only made in US dollars, and users also receive bonuses through recommendations.
According to Nairametrics, the search confirmed through the SEC’s public database that CBEX was not registered with the committee, raising further suspicion.
SEC cuts unregulated activities
With the introduction of ISA 2025, the President recently signed the law Tinubu BallThe SEC has now expanded its authority to regulate and take action against digital asset operators that do not comply with registration requirements.
According to Agama, the new law provides “clear rules and regulations for digital asset platforms, including registration requirements, to promote transparency and trust.”
He explained that the framework would enable the committee to combat fraud such as Ponzi schemes, unregistered communications and misleading token promotions.
“It is important that we must act with caution even for celebrities. Become an influential person or introduce meme coins, which is not ideal for Nigerians and will not be tolerated,He added.
Key points for investors
Previously, the SEC had limited ability to take legal action against the promoters of the Ponzi scheme due to regulatory gaps. However, Agama explained in a recent TV interview that ISA 2025 provides the commission with the legal tools needed to prosecute such criminals.
With a new legal framework, Ponzi scheme operators now face up to 10 years in prison and fined 40 million guilds upon conviction.
Agama said the enhanced power would allow the SEC to take decisive action on fraudulent plans, noting that the commission promised to eliminate harmful players from the financial sector and restore investor confidence.
“This will also allow the Commission to get “bad guys” out of their woes and ensure people are more confident and happy in investing in Nigerian markets, which is fully aware that the SEC’s investor protection responsibility has now been enhanced,” he concluded.
