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The Securities and Exchange Commission (SEC) has declared its intention to prosecute the promoters of Crypto Bridge Exchange (CBEX) for operating an unregistered digital asset trading platform and allegedly defrauding unsuspecting Nigerian investors.
In a statement released on Thursday, the Commission revealed that it is actively investigating CBEX and its associated entities, stressing that those behind the failed scheme “will not go scot-free.”
SEC Director General, Dr. Emomotimi Agama, said the Commission is empowered by the newly enacted Investments and Securities Act, 2025 (ISA 2025), to clamp down on Ponzi schemes and illegal investment operations, adding that the CBEX case would serve as a warning to others engaged in similar fraudulent activities.
Agama said the updated law enhances SEC’s ability to regulate new and evolving areas in the financial markets, including virtual and digital assets.
“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms,” Agama said.
CBEX, which also operated under the name ST Technologies International Ltd and brands such as Smart Treasure and Super Technology, was never registered by the SEC to operate as a Digital Assets Exchange, according to the Commission.
In a circular dated April 17, 2025, the SEC said the platform had presented itself as a digital asset trading outfit offering unusually high returns to investors, a model the Commission described as fraudulent.
“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 SEC stated.
Preliminary investigations revealed that CBEX engaged in promotional tactics designed to create a false sense of legitimacy.
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It promised guaranteed high returns within short timeframes—an offer the SEC said is a common tactic used by Ponzi schemes to lure unsuspecting investors.
The company has since failed to honour withdrawal requests and abruptly shut its physical offices amid growing complaints from subscribers.
The Commission said it is working with law enforcement agencies to initiate enforcement actions against CBEX, its affiliates, and its promoters.
Agama explained that while the SEC supports innovation in financial services, such innovation must be practiced within a framework that protects investors and upholds the integrity of the capital market.
“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” he said.
He noted that even before the enactment of ISA 2025, the Commission had successfully shut down several illegal investment schemes, including the prosecution of Fahmzi Interbiz for defrauding Nigerians.
With the new law, Agama said the SEC is better equipped to ensure promoters of such schemes are no longer able to exploit regulatory gaps.
As part of its investor protection mandate, the SEC has advised the public to be cautious of any investment scheme offering unrealistic returns or operating recruitment-based models.
The Commission urged potential investors to verify the registration status of any investment platform through its official portal at before making any financial commitment.
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