The Director General of the Security and Exchange Commission
(SEC), Dr Emomotimi Agama has explained that there is nothing the Commission
can do to help victims of the CBEX scam recover their lost investments.
CBEX or Crypto Bridge Exchange, an unregistered online
trading platform vanished last Monday with about N1.3 trillion invested by
about 600,000 investors.
CBEX which had operated under ST Technologies International
Ltd lured its victims with a 100 percent returns on investment after 30 days.
Asked by Sunday Vanguard if there is anything the Commission
can do to help victims recover their money in part or in full, Dr Agama said:
“There is nothing the Commission can do”.
He however expressed concern that Nigerians continued to
invest in an unregistered digital entity without drawing the attention of the
Commission.
“We are worried that this went on for long without anyone
drawing our attention to it. That is why we are doing more enlightenment and
asking people to come forward to report this for early detection.
How Nigerians can identify a Ponzi Scheme
He warned Nigerians against investing their money in Ponzi
Schemes, saying such schemes make promises that are not real.
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“You can identify a Ponzi Scheme when an entity makes offers
that appear certainly untrue and are bogus. The definition we have in the ISA
(Investments and Securities Act, 2025) clearly tells you that when an
investment firm makes any promise that is almost totally unattainable, you will
know that that is clearly a Ponzi scheme”.
SEC disclosed that preliminary investigations have revealed
that CBEX engaged in promotional activities to create a false perception of
legitimacy, in order to entice unsuspecting members of the public into
investing monies, with the promise of implausibly high guaranteed returns
within a short timeframe.
The Commission stated that CBEX, which also operates under
the corporate identity of ST Technologies International Ltd, Smart
Treasure/Super Technology, had held itself out as a digital asset-trading
platform, offering high returns to investors in Nigeria.
According to the SEC, “The Commission hereby clarifies that
neither CBEX nor its affiliates were granted registration by the Commission at
any time to operate as a Digital Assets Exchange, solicit investments from the
public or perform any other function within the Nigerian capital market.
The SEC emphasised that pursuant to the provisions of
Section 196 of the Investments and Securities Act 2025, the Commission would
collaborate with relevant law enforcement agencies to take appropriate
enforcement action against the CBEX, its affiliates and promoters.
“The Commission uses this medium to remind the public to
refrain from investing in or dealing with any entity offering unrealistic
returns or employing similar recruitment-based investment models. Prospective
investors are advised to verify the registration status of investment platforms
via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting
with them”, the SEC added.
How I lost N500,000
in 7 days – Victim
Narrating how he got involved in the doomed platform, an
Abuja based journalist told Sunday Vanguard that he invested N500,000 on April
4, 2025 with the hope of receiving N1 million after 30 days.
The journalist who requested not be named said: “I was
involved for just seven days and lost N500,000 to the scam. I have a friend who
has been pressuring me to invest on CBEX since December last year and I
actually have been resisting because of my past experience with MMM.
“But he kept telling me and showing me how much he was
making. So, I decided to give it a try and I got involved and finally
transferred N500,000 on April 4. I was admitted into a Telegram group chat.
Then the story began. The only luck I have is that my wife refused to be
involved after I asked her to. I would have been in serious trouble by now.
“Immediately I got wind of troubles especially when people
were locked out of the Telegram group, I tried to withdraw my money which had
risen to N616,000 but I couldn’t”, he narrated.
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