The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stated that the Commission cannot assist victims of the collapsed Crypto Bridge Exchange (CBEX) in recovering their lost investments, which are estimated at a staggering ₦1.3 trillion.
CBEX, operating under the name ST Technologies International Ltd, vanished last Monday after luring nearly 600,000 Nigerians with promises of a 100% return on investment within 30 days. The platform had no registration with the SEC and was not authorized to operate as a digital trading entity.
Speaking to Sunday Vanguard, Dr. Agama said, “There is nothing the Commission can do”, in response to questions about possible compensation or recovery efforts for victims. He expressed concern that such a large-scale operation escaped early regulatory detection due to a lack of reports from the public.
“We are worried that this went on for long without anyone drawing our attention to it. That is why we are intensifying our investor education campaigns and urging the public to report suspicious schemes early,” he said.
How to Spot a Ponzi Scheme
Dr. Agama cautioned Nigerians to be wary of investment platforms that make “unrealistic” promises, noting that Ponzi schemes often promise guaranteed high returns within implausibly short periods.
“You can identify a Ponzi scheme when an entity makes offers that are clearly bogus and unattainable. The ISA (Investments and Securities Act, 2025) gives a clear framework for identifying such scams,” he explained.
Preliminary SEC investigations revealed that CBEX engaged in promotional tactics designed to create a false sense of legitimacy, deceiving the public with guarantees of swift, high profits.
According to the Commission, CBEX also operated under aliases such as Smart Treasure and Super Technology, presenting itself as a digital asset trading platform. SEC has clarified that neither CBEX nor its affiliates were ever registered or licensed to solicit investments in Nigeria.
SEC Moves to Sanction CBEX Promoters
The Commission affirmed that, in line with Section 196 of the ISA, it will work with law enforcement agencies to investigate and prosecute those behind the fraudulent platform.
“The Commission reminds the public to avoid investment platforms promising unrealistic returns or using recruitment-based models. Always verify registration status via our portal: www.sec.gov.ng/cmos before investing,” the SEC warned.
Victims Share Painful Losses
One of the victims, an Abuja-based journalist who preferred to remain anonymous, narrated how he lost ₦500,000 within a week.
“I invested on April 4, hoping to double it in 30 days,” he said. “My friend had been pressuring me since December. When I saw what he claimed to be earning, I gave in. I even tried to involve my wife, but thankfully, she refused. Seven days later, I lost access to the Telegram group, and I couldn’t withdraw my money, which had grown to ₦616,000.”
As the CBEX saga continues to unfold, the SEC is intensifying its public awareness efforts, urging Nigerians to stay vigilant and avoid falling victim to fraudulent schemes that promise quick riches.
Comments