SEC Nigeria Issues Public Warning Against CBEX and Affiliates for Unlicensed Operations

The Nigerian Securities and Exchange Commission (SEC) has issued a public warning against the Crypto Bridge Exchange (CBEX) and its affiliate, ST (Smart Treasure/Super Technology) Technologies International Ltd., for engaging in unlicensed operations.

The warning was contained in a circular released by the SEC through their X (formerly Twitter) account. It alerted the Nigerians to the dangers of dealing with CBEX and any of its affiliates.

PUBLIC NOTICE ON CBEX pic.twitter.com/PKhzl5Ta7D

— SEC Nigeria (@SECNigeria) April 17, 2025

In addition, the Commission stated that it learned that CBEX guarantees a high return on investment (ROI) within a short time and also employs referral-based incentives to attract more people to the platform, resulting in many individuals having their money locked up in the process.

Moreover, the SEC stated that any entity employing similar tactics to those used by CBEX should be disregarded by Nigerian citizens.

The SEC added that prospective investors should endeavour to verify the registration status of any investment platform on the SEC’s website before committing their wealth to it.

According to its release, the SEC promised to collaborate with relevant law enforcement agencies to hold CBEX and its affiliates accountable.

“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 SEC stated.

The SEC Needs Due Diligence to Combat Ponzi Schemes Amid New Licensing Delay

Recently, the SEC hosted a stakeholder engagement that included fintech leaders, legal experts, and Dr. Emomotimi Agama, the Director-General of the SEC, for a conversation on the Investment and Securities Act (ISA) 2025.

Dr. Emomotimi stated that the Commission delays the release of new licenses to ensure due diligence for the smooth and efficient adoption of the ISA 2025 and also to convincingly fight Ponzi schemes and pump-and-dump tokens and promote transparency.

The Director-General maintained that the ISA 2025 promotes fintech companies, fosters technological innovations, and specifically the digital assets industry, while ensuring regulatory compliance.

He further emphasized that the registration of crypto exchanges and other financial service providers is paramount to the success of the commission, as it is the hallmark of effective regulation.

While the Commission welcomes equitable recommendations from the public, it is working closely with the Central Bank of Nigeria, the EFCC, the CAC, and other financial sector regulators to build a law-abiding cryptocurrency environment.

FSCA Warns the Public Against AfriInvest and MutualWealth

Similarly, South Africa’s Financial Sector Conduct Authority (FSCA) warned the public against unlicensed crypto firms AfriInvest and MutualWealth.

The FSCA stated that the two illegal crypto firms are promoting fraudulent schemes promising unrealistic returns and parading fake endorsements from some South African influencers.

The financial watchdog urged investors to verify the legitimacy of financial services providers before engaging with them.

As more people adopt cryptocurrency, so does the increase in illicit on-chain activities, which promote money laundering and terrorism financing. As a result, regulators are working to regulate the crypto industry.