The Securities and Exchange Commission (SEC) has warned Nigerians to steer clear of unregistered digital investment platforms, amid rising concern over the activities of CBEX, a digital asset trading platform, which has reportedly locked users out of their funds since the weekend.
Speaking during a virtual engagement with fintech stakeholders on Monday, SEC Director General Emomotimi Agama reiterated that any investment platform not duly registered with the Commission is operating illegally.
“Recently, there has been a viral post concerning a particular platform and its activities, which has since been followed by news of its closure. I want to be very clear — if it is not registered, it is illegal,” Agama stated.
He cited the newly enacted **Investment and Securities Act (ISA) 2025** as a major step forward in equipping the Commission with the necessary legal backing to tackle unregulated platforms and fraudulent schemes.
“With the new law, there are now clear rules for digital asset platforms, including registration requirements designed to enhance transparency and build public trust,” he noted.
Agama also issued a stern warning to influencers and celebrities promoting unregulated digital schemes or meme coins, saying such endorsements will no longer be tolerated.
“Celebrities must be cautious. Introducing Nigerians to unregulated investments under the guise of promotion or popularity is irresponsible and poses serious risks to the public,” he said.
The SEC boss disclosed that the ISA 2025 empowers the Commission to prosecute Ponzi scheme operators, with penalties of up to 10 years imprisonment and a N40 million fine upon conviction.
He assured investors that the Commission remains committed to sanitising the market and ensuring better investor protection.
“This new law allows us to get rid of bad actors and give Nigerians renewed confidence in the financial markets. With the SEC’s powers now strengthened, we can better fulfil our duty to protect investors,” Agama said.
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