From Adanna Nnamani, Abuja
The Securities and Exchange Commission (SEC) has urged Nigerians to report suspected illegal investment schemes for investigation and enforcement, following the collapse of the fraudulent cryptocurrency platform CBEX, which caused losses exceeding $1 billion.
In a Thursday notice, the SEC warned that Ponzi schemes and unregistered digital asset platforms threaten Nigeria’s capital market stability.
The SEC expressed alarm over rising fraudulent schemes that deceive investors with promises of high returns, often using digital assets to appear legitimate. “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the notice stated.
It highlighted unregistered platforms offering cryptocurrency, forex, or blockchain-based investments without SEC approval, cautioning, “If it sounds too good to be true, it likely is.”
Investors were urged to verify the registration status of companies or promoters on the SEC’s website (www.sec.gov.ng/cmos). The SEC cited Section 196(3) of the Investments and Securities Act, 2025, which penalises unregistered schemes with fines of at least N20 million, up to 10 years’ imprisonment, or both.
“We are committed to prosecuting violators to the full extent of the law,” the SEC affirmed, encouraging public cooperation to protect Nigeria’s investment environment.
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