CBEX: SEC warns Nigerians against fraudulent investment schemes, gives fresh directive
The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians, urging them to report any suspicious investment schemes for prompt investigation and enforcement.
The development comes in the wake of the CBEX investment fraud, a digital asset trading platform accused of defrauding unsuspecting Nigerians to the tune of over N1.3 trillion.
In a statement issued on Thursday, April 24, the Commission cautioned the public against falling for mouth-watering investment offers, especially those promising high returns with little or no risk. It noted that fraudsters often use digital assets to deceive investors and make their operations appear legitimate.
According to the SEC, such illegal and unregistered schemes pose serious risks to investors and threaten the overall stability of the capital market.
“The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the statement read.
The Commission also warned against platforms offering cryptocurrency, forex trading, or blockchain-based investments without regulatory approval, stressing that “if it sounds too good to be true, it likely is.”
Citing Section 196(3) of the Investments and Securities Act, 2025, the SEC explained that running or promoting an unregistered scheme attracts severe penalties, including a fine of not less than N20 million, imprisonment of up to 10 years, or both.
To safeguard Nigeria’s investment climate, the SEC called on the public to report suspicious activities and verify the registration status of any investment company or promoter via the SEC website.
