The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stated that the Commission is unable to recover the approximately N1.3 trillion lost by about 600,000 investors in the collapsed Crypto Bridge Exchange (CBEX) scheme. CBEX, an unregistered digital trading platform operating under ST Technologies International Ltd, promised investors a 100% return within 30 days before abruptly shutting down and disappearing with investors' funds.
Dr. Agama expressed regret that the platform operated for an extended period without the SEC being alerted, emphasizing the need for greater public awareness and early reporting to detect such fraudulent schemes sooner. He warned Nigerians to be cautious and avoid investing in Ponzi schemes, which typically make unrealistic promises and are designed to defraud investors.
While the SEC has no means to recover the lost funds, it has intensified efforts to educate the public on identifying and avoiding Ponzi schemes. The Commission is also collaborating with law enforcement agencies to clamp down on illegal investment platforms and enforce regulations under the newly enacted Investments and Securities Act 2025.
The Economic and Financial Crimes Commission (EFCC) is separately working with international agencies like Interpol and the FBI to investigate CBEX operators and explore possible recovery avenues, but the SEC Director-General’s comments highlight the difficulty in retrieving investors’ money once such schemes collapse.
