Tue Apr 15 08:10:00 UTC 2025: ## SEC Cracks Down on Unregistered Nigerian Crypto Platform Amidst Withdrawal Issues
**LAGOS, NIGERIA** – The Securities and Exchange Commission (SEC) in Nigeria has issued a stern warning against using unregistered digital asset trading platforms, following reports of difficulties withdrawing funds from the platform CBEX. While not explicitly naming CBEX, SEC Director General Emomotimi Agama stated unequivocally that any such platform operating without SEC registration is illegal. This announcement comes after social media buzzed with concerns over CBEX, with some users alleging it exhibited characteristics of a Ponzi scheme.
Agama’s statement, made during a virtual engagement with fintech stakeholders, emphasized the new Investment and Securities Act (ISA 2025), which provides a legal framework for regulating digital asset platforms, including mandatory registration. The Act empowers the SEC to take action against illegal activities such as Ponzi schemes, pump-and-dump schemes, and unregistered exchanges. The DG also cautioned celebrities against promoting potentially harmful investment schemes, stating that such actions will not be tolerated.
The ISA 2025 significantly strengthens the SEC’s ability to prosecute perpetrators of financial crimes. Previously, the Commission lacked the legal authority to pursue Ponzi scheme operators effectively. This new legislation aims to create a safer and more transparent investment environment for Nigerians. The SEC’s firm stance underscores its commitment to protecting investors from fraudulent activities within the burgeoning digital asset market.
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