…Crashed digital platform unregistered in Nigeria, has various names, say SEC
By Yahaya Umar, Abuja
Following last Monday’s crash of digital trading platform, Crypto Bridge Exchange, CBEX, that sweep away N1.3 trillion from Nigerians, the Economic Financial Crimes Commission, EFCC, has said that the many Nigerians failed to listen to its warnings not to deal with such schemes.
EFCC’s Head, Media & Publicity, Dele Oyewale, stated featuring on Channels Television breakfast programme, The Morning Brief.
Oyewale, said that the EFCC had persistently warned warned Nigerians against patronising such platforms.
In this vein, he recalled that “on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list–that shows that we’re proactive and we have our hands on what is happening”.
However, the Commission had taken steps to enlighten citizens about the dangers of the criminal schemes, the spokesman said.
Furthermore, “Concerning this CBEX thing, we are on it, it is not that we did not know, and you know we have been alerting Nigerians about ways and means to separate themselves from this type of schemes.
“So, before the calls came, we were working,, and while the calls were coming, we were working, and even after the calls, we’re still working.
Blame according to him cannot be laid on the EFCC, saying CBEX is a Chinese digital trading company with no jurisdictional link with Nigeria, pointing out that all the area offices that people are saying are in Ibadan and in some other locations are not functional offices. The entire thing is online.
“And we have been warning Nigerians against criminal engagements online. So, what would you expect the EFCC to do? We have given empowerment, given enlightenment, given public awareness, and raised intelligence.
“It is to the credit of the EFCC chairman that he came forward to say that there are 58 companies that Nigerians are patronising that they should no longer patronise.
“So, if the commission is as proactive as that, then the rest is for the people concerned to be more vigilant and to ensure that they guard their investment in line with the information that is available”.
AljazirahNigeria reports that CBEX is a digital trading asset platform that promised investors a 100% return on investment in 30 days. But it turn out to be a source of woes for Nigerians including celebrities.
Meanwhile, Securities and Exchange Commission, SEC, has stated that Crypto Bridge Exchange was never granted registration to operate as a digital assets exchange in Nigeria.
Director-General of the SEC, Dr. Emomotimi Agama, said this in a statement.earlier, while urging the public to cease all dealings with the platform.
The warning follows recent reports of CBEX, operating under various names, including ST Technologies International Ltd. and Smart Treasure/Super Technology, soliciting investments with promises of high returns.
CBEX, has failed to honour withdrawal requests from its subscribers and abruptly closed its physical offices amid mounting complaints.
Agama said, “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”.
He said that preliminary investigations carried out by the commission had revealed that CBEX engaged in promotional activities to create a false perception of legitimacy.
He noted that this was to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.
He 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 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.
“Prospective investors are advised to verify the registration status of investment platforms through the commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them”, he said.
Agama, noted that the commission was launching a more forceful and coordinated enforcement regime against unregistered and illegal “phony” investment schemes, otherwise known as Ponzi schemes.
He said that with the newly enacted Investments and Securities Act, 2025 (ISA 2025), the commission now had enhanced powers to prosecute Ponzi schemes and their promoters.
He explained that investigations were ongoing on CBEX, adding that promoters of the failed scheme would not go scot-free.
Agama said the new law had given the commission more powers and blocked loopholes in emerging areas of virtual and digital assets.
“The ISA 2025 has given the commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms”, he said.
He added that while the apex capital market regulator would continue to support innovations in finance and investments, the commission would maintain strict oversight in line with its enhanced investor’s protection mandate.
He said, “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market”.
He recalled that even with the limited scope of the repealed Act, the SEC had maintained extensive surveillance and was able to shut down a number of Ponzi schemes, with some of the promoters, like Fahmzi Interbiz, jailed for defrauding Nigerians.
According to him, with the ISA 2025 giving the commission more powers to deal with issues, the commission will ensure that promoters of such schemes are not allowed to operate.
