CBEX Collapse: SEC Declares Platform Illegal, Launches Manhunt for Operators Over Investor Fraud

2 days ago 21

The Securities and Exchange Commission (SEC) has declared the CBEX digital trading platform illegal.
It statied that it was never registered with the agency, following its collapse and loss of investors’ funds.

The Securities and Exchange Commission (SEC) has declared CBEX, a digital trading platform, as illegal, confirming it was not registered with the commission before its sudden collapse.

SEC Director-General, Emomotimi Agama, revealed this during an interview on Arise Xchange, following reports that CBEX had promised investors a 100 percent return before shutting down operations.

“When a scheme is not registered with the SEC, it becomes illegal,” Agama said, stressing that investor protection begins with regulation.

Agama disclosed that the SEC was unaware of CBEX’s activities due to the lack of formal complaints, noting that such schemes are often hidden from regulators.

“If we had received any formal complaint regarding CBEX, the team at the SEC would have actually swung into action,” he stated.

However, he assured that a full investigation has now begun, and the SEC will hunt down those responsible, invoking laws that allow for prison sentences of up to 10 years for fraudsters.

The SEC boss also reiterated long-standing warnings against Ponzi schemes, referencing their origins with Charles Ponzi in the 20th century. “Ponzi schemes didn’t start today; they are a global malaise,” he noted.

Agama added that the SEC is ramping up public education efforts, including podcasts and plans for a capital market radio, to help Nigerians avoid similar traps.

He emphasised the commission’s collaboration with the EFCC to tackle financial crimes and protect citizens.