By Chukwuma Umeorah
The Securities and Exchange Commission (SEC) has busted at least 10 illegal investment platforms so far in 2025, as the regulator intensifies crackdown on unlicensed operators in Nigeria’s investment ecosystem.
The flagged operators include CBEX (Crypto Bridge Exchange), UYJ Multitrade Limited (“My Share”), Pro-Vest (Promiseland Estate and Construction Ltd), Tofro.com, Property World Africa Network (PWAN/PWAN Max), Silverkuun Investment Cooperative Society (Silverkuun Limited) and Punisher Coin ($PUN).
Others are ZugaCoin, SamZuga GPT, Sapphire Scents Limited and most recently, CMTrading.
While SEC has consistently issued warnings about Ponzi and fraudulent investment schemes over the years, its enforcement actions saw a notable uptick after April 17, 2025, when it formally blacklisted CBEX (Crypto Bridge Exchange), operated by ST Technologies International Limited, for operating without registration and misleading the public.
The CBEX saga, widely regarded as one of the biggest financial scams in Nigeria’s history, defrauded investors of over N1.3 trillion, triggering widespread outrage and regulatory reforms aimed at cleaning up the capital market. There have also been historical cases of other high-profile Ponzi schemes such as MMM Nigeria, MBA Forex, Famzhi Interbiz, and the Q-Net-linked scam, among others.
In the weeks following the CBEX incident, the Commission published a series of public notices identifying other entities involved in similar unlawful activities. Between April and June 2025 alone, eight additional platforms were flagged, compared to just two in the first quarter of the year.
The first two alerts of the year were issued on March 6, when SEC warned the public against doing business with UYJ Multitrade Limited, popularly known as “My Share,” and Pro-Vest (also referred to as Promiseland Estate and Construction Ltd), both accused of soliciting funds from the public without proper licensing.
Subsequently, on April 30, SEC identified Tofro.com as another illegal entity. This was followed by warnings against Property World Africa Network (PWAN/PWAN Max) on May 6, which was cited for soliciting funds illegally under the guise of real estate investments.
Similarly, Silverkuun Investment Cooperative Society (operating as Silverkuun Limited) on May 28 was flagged for falsely presenting itself as a legitimate investment adviser, while Punisher Coin ($PUN), flagged on June 5, was exposed as an unregistered meme coin with no intrinsic value or tangible backing.
In June, four more platforms were listed as illegal entities operating in Nigeria, including Punisher Coin ($PUN) on June 5, ZugaCoin and SamZuga GPT on June 17, Sapphire Scents Limited on June 19, and CMTrading on June 20.
In all cases, SEC cited violations of the provisions of the Investments and Securities Act (ISA), stating that the entities were neither registered nor authorised to operate in the Nigerian capital market. The Commission further warned that involvement with such schemes puts investors at significant risk of financial loss. “The public is strongly advised to always verify the registration status of any entity or individual offering investment services through the Commission’s website or the dedicated CMOs portal,” the SEC stated in one of its circulars.
The Director General of SEC, Dr. Emomotimi Agama, while acknowledging the pain of affected victims, highlighted the difficulty of detecting unregistered entities, insisting that the SEC’s hands are often tied until complaints are received. “There are several more yet-to-be-identified unauthorised platforms operating across the country, and although the Commission is ramping efforts to identify and name them, it requires the cooperation of the public and other stakeholders to report suspected cases to the SEC.”
The Head of the Enforcement Department at the SEC, Sa’ad Abdusalam, also identified another bottleneck inhibiting the Commission from effectively playing its role. “Systemic delays in the judiciary continue to undermine timely enforcement of securities laws and frustrate the Commission’s efforts to curb fraudulent investment schemes,” he said.
He added that the Commission was constantly improving its existing frameworks, including expanding its enforcement and legal team, but noted that even when strong evidence is available, actions are slowed down by the legal requirement for court approval, which often takes weeks or even months to acquire.
Abdusalam, however, revealed that to strengthen its efforts, the Commission has been collaborating with law enforcement agencies like the Economic and Financial Crimes Commission (EFCC) and other financial regulators such as the Central Bank of Nigeria (CBN) to coordinate and pursue enforcement actions.
The SEC’s escalation in enforcement aligns with the Investments and Securities Act (ISA) 2025, signed into law in March, which brought virtual asset service providers and digital asset exchanges under its regulatory purview. The new legislation empowers the Commission with broader tools, including asset freezing powers and stiffer penalties for operators of illegal investment schemes, ranging from N20 million in fines to up to 10 years in prison.
Industry observers believe that while the SEC has long struggled with curbing the proliferation of Ponzi schemes, the CBEX crisis served as a turning point in Nigeria’s regulatory posture. Some market operators, while commending the more stringent regulation, also suggested that there should be some level of ‘punishment’ for members of the public who put their monies in such unregistered platforms promising unrealistic returns. “The government also needs to apply some punishment on the victims themselves for aiding and abetting the perpetration of fraud in Nigeria’s financial system,” said David Adonri, Vice Chairman, Highcap Securities.
He argued that frequent cases of illegal operators continue to undermine the appeal of Nigeria’s investment ecosystem to foreign investors. He added, “What we are seeing the SEC doing now is not just reactionary, but a deliberate shift in strategy to restore investor confidence.”
The SEC, on its part, has reiterated its commitment to investor protection and market integrity, warning that more names will be published as investigations continue. It also called on members of the public to report any suspicious platforms or investment offers promising unrealistic returns.
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