CBEX, affiliates not registered to operate as Digital Assets Exchange -SEC

Nigeria’s Securities and Exchange Commission (SEC) said its attention has been drawn to recent media reports/publications on the activities of CBEX (Crypto Bridge Exchange).

“CBEX, which also operates under the corporate identity of ST Technologies International Limited, Smart Treasure/Super Technology, has held itself out as a digital asset trading platform, offering high returns to investors in Nigeria.

“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,” SEC said in a recent note.

Nigerians are no strangers to Ponzi schemes, with CBEX joining a long list of successful scams. According to investors, the people behind the digital platform carted away over N1.3 trillion from their wallets after crashing last week Monday.

Read also: How CBEX wiped off investors’ N1.3trn in nine months

As a result, angry ‘investors’ reportedly stormed and looted the office of Smart Treasure, an affiliate of CBEX, located in the Oke Ado area of Ibadan, Oyo State.

The platform now joins the scams hall of fame in the country. This list includes Mavrodial Mondial Movement (MMM) of 2016 – 2017, which affected over three million Nigerians; Twinkas, Ultimate Cycler, Zar Fund, Givers Forum, iCharity, Get Help Worldwide, and more.

CBEX launched in Nigeria in July 2024, promising investors a 100 percent return in 30 days. Users were encouraged to refer others, with bonuses and tiered rewards based on the size of their referral network.

The SEC 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 are advised to verify the registration status of investment platforms via the Commission’s dedicated portal.

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”.

Read also: CBEX investors will get their money back, says EFCC

The SEC further noted that, “Pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission would collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters”.

The Economic and Financial Crimes Commission (EFCC) recently assured individuals who invested in the CBEX digital trading platform that they would recover their funds. EFCC revealed that it had been monitoring the platform even before the recent wave of public complaints.

CBEX, which had promised investors a 100 percent return on investment, faced a crisis over the weekend as many users reported being unable to withdraw their funds, sparking outrage on social media.