SEC to take appropriate enforcement action against CBEX promoters, others, issues clarification

The Securities and Exchange Commission (SEC), on Thursday, disclosed that it will collaborate with law enforcement agencies to take appropriate enforcement action against fraudulent cryptocurrency investment scheme known as “CBEX”, its affiliates and promoters.

The Commission clarified it did not grant registration to Crypto Bridge Exchange (CBEX) or its affiliates to operate in Nigeria.

SEC made the clarification in a statement on Thursday, in response to recent media reports/publications on the activities of CBEX (Crypto Bridge Exchange), CBEX, which reportedly also operates under the corporate identity of ST Technologies International Ltd, Smart Treasure/ Super Technology.

SEC noted media reports which states that CBEX and its affiliates held itself out as a digital asset trading platform, offering high returns to investors in Nigeria.

The Commission denied granting a registration license to either CBEX or any of its affiliates.

“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 partly reads.

According to SEC, preliminary investigations carried out by the Commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.

“CBEX has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints,” the Commission added.

Pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission promised to “collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters.”
The Commission reminded the public to refrain from investing in or dealing with any entity offering unrealistic returns or employing similar recruitment-based investment models.
Prospective investors were advised to verify the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.