Amid growing concerns on online financial scams, the Federal Government through its Securities and Exchange Commission (SEC) has issued a warning to social media influencers and bloggers, cautioning them against promoting illegal investment schemes and other unauthorized financial activities.
SEC’s warning comes on the heels of the ₦1.3 trillion fraud allegedly perpetrated by Crypto Bridge Exchange (CBEX), a digital investment platform that collapsed, leaving thousands of investors financially devastated, and reportedly operated without registering with the commission.
The commission’s Director-General, Emomotimi Agama, in the warning notice issued yesterday in Abuja, said the agency was working closely with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to investigate and prosecute violators.
Agama pointed out that the recently enacted Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered investment schemes.
“The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” he stated.
Agama highlighted the significance of the ISA 2025, describing it as a major step forward in securing the Nigerian investment landscape and building a resilient financial market.
“The SEC has also established dedicated departments to monitor market activities and conduct inspections aimed at detecting irregularities early. These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” he said.
SEC had in a public annoucement made available in Pidgin an three major Nigeria languages, alerted that CBEX’s operates in other business names to deceive investors, adding that the promises made by the platform to double investments within a month were fraud.
“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he said.
He urged Nigerians to always verify the authenticity of any investment opportunity with the SEC before committing funds, cautioning that “if it sounds too good to be true, it probably is.”
Emphasizing the commission’s commitment to investor protection and market growth, the director-general advised citizens to work with licensed professionals and beware of fraudulent investment opportunities.
