CBEX: SEC Sends Warning to Davido, Taaooma, Others Over Endorsement of Unregistered Investment
- SEC warned celebrities, bloggers, and influencers not to promote unregistered investment schemes
- This occured following the enactment of the Investments and Securities Act 2025 by President Bola Tinubu
- The new law empowers the Commission to impose a minimum punishment of N20 million and a maximum jail term of 10 years on promoters
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Influencers, bloggers, and celebrities have been cautioned by the Securities and Exchange Commission to refrain from endorsing unregistered investment schemes or face legal repercussions.
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The warning comes after President Bola Tinubu signed the Investments and Securities Act 2025 into law, according to a statement seen by Punch.
The new law clearly defines Ponzi schemes and gives the Commission the authority to punish those who promote them with a minimum fine of N20 million and a maximum jail sentence of 10 years.
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Speaking on the new rules, SEC Director-General Emomotimi Agama stated that the Commission is closely collaborating with the Nigeria Police Force, the Economic and Financial Crimes Commission, and other law enforcement organisations to look into and bring charges against violators.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities,” Agama said.
He pointed out that the SEC is stepping up its efforts to target Ponzi schemes in the wake of the demise of CBEX, a digital investment platform that was suspected of scamming Nigerians out of more than N1.3 trillion. Claims of global ties and unrealistic returns were allegedly used by CBEX to entice investors.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama stated.
The head of the SEC claims that the ISA 2025 also places digital assets under the commission's regulatory purview for the first time.
According to him, since virtual assets are now formally recognized as securities, digital asset exchanges and virtual asset service providers must register with the SEC and abide by the applicable regulations.
Agama emphasized that the SEC's approach to safeguarding Nigerian investors continues to heavily rely on education. In addition to promoting capital market knowledge into schools and universities, he stated, "We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes."
The commission advised the public to always verify the registration status of any investment scheme with the SEC before parting with their funds. “Once it is too good to be true, it certainly is not true,” he warned.
Additionally, he said that the SEC has set up specialized divisions to keep an eye on market activity, carry out inspections, and identify potential fraud early on.
Agama reiterated the SEC’s commitment to investor protection and market development.
SEC takes action against ponzi scheme operators
Legit.ng reported that Nigeria's Securities and Exchange Commission (SEC) has responded to the ongoing concerns surrounding CBEX (Crypto Bridge Exchange), a platform at the centre of a major investment scam that has caused many Nigerians to lose billions of naira.
CBEX, which also operates under names like ST Technologies International Ltd and Smart Treasure/Super Technology, presented itself as a digital asset trading company, promising investors high returns.
However, the platform recently collapsed, leaving huge sums of investors’ money trapped.
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Source: Legit.ng
