Kayode Tokede

Following the crash of CBEX, the Securities and Exchange Commission (SEC) has issued a warning to social media influencers and bloggers, cautioning them against promoting unregistered investment schemes.

The SEC emphasised that it is working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force (NPF), and other relevant government bodies, to investigate and prosecute violators.

Director General of the SEC, Dr. Emomotimi Agama, stated that the Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered schemes, urging celebrities, social media influencers, and bloggers to steer clear of endorsing such ventures to avoid legal consequences.

“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities”.

 He said the SEC is intensifying efforts to combat Ponzi schemes following the enactment of the Investments and Securities Act (ISA) 2025, a landmark law signed by President Bola Ahmed Tinubu.

The new legislation explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of N20 million and a 10-year jail term for promoters of such fraudulent schemes. He emphasised the Commission’s capacity and readiness to tackle Ponzi schemes, stating, “SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess”.

He highlighted that the SEC has dealt with similar schemes before and will continue to do so, leveraging the new powers granted by ISA 2025 to protect investors and develop the market.

“The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, has underscored the urgency of this crackdown. CBEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations” He noted, “We will shut down their operations and the promoters will be made to face the full weight of the law.”