Hope is now completely shattered for Nigerians who may have believed that their investments in the crashed CBEX ponzi could be recovered by the country’s anti graft agencies.
Initially emboldened by the statement earlier issued by the Economic and Financial Crimes Commission, EFCC, that investors should not panic, as necessary steps were being undertaken to recover the fraud, the Security and Exchange Commission, SEC, on Sunday deflated such hopes.
Responding to Sunday Vanguard on the subject, The Director General of the Security and Exchange Commission (SEC), Dr Emomotimi Agama explained that there is nothing the Commission could do to help victims of the CBEX scam recover their lost investments.
CBEX or Crypto Bridge Exchange, an unregistered online trading platform vanished last Monday with about N1.3 trillion invested by about 600,000 investors.
CBEX which had operated under ST Technologies International Ltd lured its victims with a 100 percent returns on investment after 30 days.
“There is nothing the Commission can do”, Dr Agama told Sunday Vanguard.
He however expressed concern that Nigerians continued to invest in an unregistered digital entity without drawing the attention of the Commission.
“We are worried that this went on for long without anyone drawing our attention to it. That is why we are doing more enlightenment and asking people to come forward to report this for early detection.
He warned Nigerians against investing their money in Ponzi Schemes, saying such schemes make promises that are not real.
“You can identify a Ponzi Scheme when an entity makes offers that appear certainly untrue and are bogus. The definition we have in the ISA (Investments and Securities Act, 2025) clearly tells you that when an investment firm makes any promise that is almost totally unattainable, you will know that that is clearly a Ponzi scheme”.
SEC disclosed that preliminary investigations 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.
The Commission stated that CBEX, which also operates under the corporate identity of ST Technologies International Ltd, Smart Treasure/Super Technology, had held itself out as a digital asset-trading platform, offering high returns to investors in Nigeria.
According to the SEC, “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 SEC emphasised 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 Commission uses this medium to remind 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: www.sec.gov.ng/cmos before transacting with them”, the SEC added.
