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| Reps discuss SEC crypto fraud alert in Abuja |
Nigeria’s top markets regulator and lawmakers are sounding a clear warning. The Securities and Exchange Commission says Crypto Bridge Exchange (CBEX) never held a valid license to trade digital assets here. The platform lured investors with high‑return promises while it lacked legal standing .
The SEC’s April 17, 2025, circular made one point plain: CBEX and its other trading names never won approval. The firm shut its doors and froze withdrawal requests. Many investors now face blocked accounts and mounting losses .
Fraud linked to digital assets is on the rise both here and worldwide. Global flows to illicit crypto addresses hit around $40.9 billion in 2024, a record low in value but still a huge risk pool for bad actors . At home, Nigeria saw fraud losses jump from ₦468.49 million in Q1 2024 to ₦42.6 billion in Q2 2024, as scammers grow more daring .
The SEC uses an online portal so investors can check which platforms are cleared to operate. Only a handful hold “Approval‑in‑Principle” status under its new incubation schemes. CBEX was never on that list .
New rules under the 2025 Investment and Securities Act now treat crypto assets as securities. The SEC aims to keep Nigeria in good standing with global watchdogs. Yet some say the pace of approvals lags as demand for digital trading soars .
Market analysts point out that a clear rulebook can curb scams. They note that swift approvals paired with strong checks would help real exchanges grow. They say better public education is key. Many investors still chase quick gains without due care.
Legal experts add that swift action against fake operators will deter copycats. They urge the EFCC and other agencies to team up with the SEC. Together, they can track stolen funds and bring promoters to justice .
Investor Takeaways
• Always verify a platform’s status on the SEC portal before you invest.
• Watch for promises of large returns with no risk.
• Spread your funds across trusted exchanges.
• Report any failed withdrawals to consumer bodies and law agencies.
The SEC vows to work with police to trace CBEX’s promoters and recover lost funds. Lawmakers in Abuja say they will push for tougher penalties against fraudsters. They also plan public forums to teach safe crypto practices.
What steps can investor groups take to spot fake crypto platforms? Share your ideas below. This debate can help shape stronger rules and safer markets.