In a stern public notice released yesterday, the Securities and Exchange Commission (SEC) of Nigeria has cautioned investors against dealing with Crypto Bridge Exchange (CBEX) and its affiliated entities, describing the platform as an unauthorized operation promising “implausibly high guaranteed returns.”
According to the notice dated April 17, 2025, CBEX, which also operates under various corporate identities including ST Technologies International Ltd, Smart Treasure, and Super Technology, has been actively soliciting investments from Nigerians despite lacking proper registration with the Commission.
“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 statement read.
The regulatory body revealed that preliminary investigations have uncovered promotional activities by CBEX designed to “create a false perception of legitimacy” to attract unsuspecting members of the public. More concerning, the SEC noted that the platform has “failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints.”
This development comes amid growing concerns about unregulated digital asset platforms targeting Nigerian investors with promises of extraordinary returns. The SEC has indicated plans to collaborate with relevant law enforcement agencies under Section 196 of the Investments and Securities Act 2025 to take appropriate enforcement action against CBEX and those promoting its activities.
Financial market analysts have observed a recent surge in complaints about digital investment platforms that operate outside regulatory oversight, particularly those employing recruitment-based models similar to traditional pyramid schemes.
“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 notice emphasized.
Prospective investors are strongly advised to verify the registration status of investment platforms through the Commission’s official portal at www.sec.gov.ng/cmos before engaging with them.
The SEC’s warning highlights the ongoing challenges in regulating Nigeria’s rapidly evolving digital asset space, as authorities work to balance innovation in financial technology with necessary investor protections.
