The Securities and Exchange Commission of Nigeria (SEC Nigeria) has released a new advisory, cautioning Nigerian investors to stay alert and avoid falling victim to fraudulent investment schemes, such as Ponzi schemes and unauthorized digital asset platforms.
In a statement issued on April 24 2025, the Commission highlighted the significant dangers associated with these unlawful investment activities.
It also underscored the critical role of regulatory compliance in maintaining the integrity and stability of Nigeria’s capital markets.
The SEC warned that fraudulent organizations and individuals are still taking advantage of unsuspecting investors by advertising misleading investment offers that claim to deliver high, guaranteed returns with minimal or no risk.
“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, which operate outside regulatory frameworks and lack approval from the SEC,” the Commission stated.
“If it sounds too good to be true, it likely is.”
The SEC urged prospective investors to carry out proper due diligence before committing funds and to confirm the registration status of financial institutions via its official database at https://sec.gov.ng/cmos.
SEC also pointed to the newly enacted Investments and Securities Act, 2025 that contains sector regulations. Section 196(3) of the act criminalizes the promotion and operation of unregistered investment schemes, making violators subject to severe penalties.
“This violation is punishable upon conviction by a fine of not less than N20 million or a prison term of 10 years, or both,” the Commission warned.
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For the first time, virtual assets and investment contracts are formally classified as securities, placing Virtual Asset Service Providers… pic.twitter.com/g2JEJ9dmB9
— BitKE (@BitcoinKE) March 29, 2025
However, the commission has postponed the issuance of new provisional licenses to cryptocurrency startups participating in its Accelerated Regulatory Incubation Programme (ARIP), due to the need for further due diligence, according to its Director General, Emomotimi Agama.
REGULATION | Additional Level of Due Dilligence Needed Before We Announce Next Set of Provisional Crypto Licenses, Says Nigeria SEC Chief
The commission is collaborating with @officialEFCC, NFIU, and ONSAhttps://t.co/54gwAOeiq4 @SECNigeria pic.twitter.com/yHtzs87CG6
— BitKE (@BitcoinKE) April 16, 2025
The warning follows public outcry concerning the operations of the digital asset trading platform, CBEX. Despite lacking any verified social media presence, CBEX portrayed itself as a high-return investment platform, but eventually left investors facing significant financial losses.
LATEST |
Latest information reveals that #Kenyans and #Nigerians have lost OVER $800 MILLION to the latest #CBEX crypto scam. @CMAKenya @KeTreasury @CBKKenya @KenyaBankers @FRC_Kenya https://t.co/40Bw3rnOpA
— BitKE (@BitcoinKE) April 22, 2025
The abrupt collapse of the platform, which rendered investors unable to retrieve their funds, has resulted in losses surpassing N2.4 billion ($1.48 billion) and highlighted significant shortcomings in Nigeria’s regulatory oversight of digital investments.
Kenyan users of the CBEX platform are also facing financial losses after their crypto accounts were completely emptied.
SCAM ALERT | Kenyans Count Losses on CBEX Crypto and Forex Trading Platform
“Today morning, I woke up with like $6,000 (KES 777,680) in my crypto wallet. But at around 7 PM, it had been cleared to zero.”https://t.co/h1ZWFjfKZa @KeTreasury @CMAKenya @CBKKenya @DCI_Kenya pic.twitter.com/0h7jq8cRXg
— BitKE (@BitcoinKE) April 16, 2025
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