The Securities and Exchange Commission (SEC) has issued a warning to Nigerians about Crypto Bridge Exchange (CBEX), stating that the platform is not registered or authorized to operate as a digital asset exchange in the country.
In a circular released on Thursday, the SEC clarified that CBEX, which also operates under the names ST Technologies International Ltd and Smart Treasure/Super Technology, has been soliciting investments illegally and making promises of excessively high returns.
“The Commission affirms that neither CBEX nor any of its affiliates have been granted authorization to function as a digital asset exchange or to solicit investments from the public within the Nigerian capital market,” the SEC said in its notice.
CBEX allegedly offered investors a 100% return on investment within 30 days, a claim that has raised significant concerns. However, the platform is now under scrutiny for fraud, with reports that it manipulated withdrawal records and hindered users from accessing their funds.
Preliminary investigations by the SEC suggest that CBEX engaged in deceptive advertising, creating a misleading image of legitimacy. The platform reportedly failed to process withdrawal requests and has closed its physical locations after receiving numerous complaints.
Under the newly enacted Investments and Securities Act 2025, the SEC plans to work with law enforcement to take action against CBEX, its promoters, and associated entities.
The commission cautioned the public to steer clear of investment schemes that offer unrealistic returns or operate without proper registration.
SEC Director-General Emomotimi Agama emphasized that stricter enforcement actions will be taken against illegal and unregistered digital asset platforms, asserting that CBEX’s promoters will be held accountable. “The new law provides us with stronger tools to protect investors and restore confidence in the market,” Agama stated.
While the SEC supports financial innovation, it stressed that such innovations must operate within a regulated framework that ensures investor protection and market integrity.
The Federal Government has expressed sympathy for the Nigerians affected by CBEX and has called for collective action to tackle the growing issue of Ponzi schemes in the country.
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