Key Takeaways
- The Nigerian Securities and Exchange Commission (SEC) has banned the Crypto Bridge Exchange (CBEX) from operating without regulatory approval, raising significant concerns about investor protection and market integrity.
- CBEX has continued to solicit unauthorized payments from users attempting to withdraw their funds, highlighting ongoing regulatory challenges in Nigeria’s crypto space.
- The SEC emphasized that CBEX’s demand for withdrawal fees violates the Investments and Securities Act 2025, urging the public to avoid transactions with the platform to prevent potential financial losses.
Nigeria’s Securities and Exchange Commission (SEC) has warned that the Crypto Bridge Exchange (CBEX) was operating in the country illegally and remains banned in Nigeria.
According to a public statement issued by the Nigerian SEC, CBEX, operating under the corporate identity of ST Technologies International Ltd, had not been registered by the Commission. The Nigerian SEC advised the public to refrain from patronizing or transacting any investment-related business with CBEX.
CBEX was in Defiance
Citing unauthorized withdrawal fees and ongoing investigations aimed at protecting investors and upholding market regulations, the regulatory agency stated that CBEX was in defiance not only of the Investments and Securities Act 2025 but also exposed investors to significant financial risks. The notice read:
“According to the reports, CBEX promoters are demanding $200 from subscribers with balances above $1,000, and $100 from those with balances below $1,000, before withdrawals can be processed […] unequivocally, neither CBEX nor ST Technologies International Ltd. (or Smart Treasure/Super Technology) is registered with the Commission or authorized to offer investment-related services to the Nigerian public.”
Stringent Enforcement Mechanisms
In early 2025, CBEX was on the regulatory radar of the Nigerian SEC after suspending withdrawals and reporting a so-called “security breach,” which led to user account balances being wiped out. The incident led to a public outcry, with the exchange’s offices being ransacked and looted by angry investors. Reports stated that some investors lost vast amounts of funds, underscoring the human cost of regulatory lapses in the crypto sector. The development intensified calls for the Nigerian SEC to take action and facilitate stronger oversight and more stringent enforcement mechanisms to prevent recurrence.
The Nigerian SEC, in its latest statement, confirmed that it was working with other law enforcement agencies to conduct a comprehensive investigation into CBEX’s activities. The regulator stated that it intends to hold CBEX and its promoters accountable for their unauthorized investment schemes and to recover funds where possible. The commitment by Nigeria’s SEC to pursue further legal action highlights a growing intolerance globally for non-compliance by crypto companies and a dedication to fostering a secure and transparent financial ecosystem for cryptocurrency investors. The agency said:
“The Commission is collaborating with relevant law enforcement agencies to investigate CBEX/ST Technologies International Ltd. properly and will take appropriate actions in line with the provisions of the Investments and Securities Act, 2025.”
Conclusion
The renewed warning by the Nigerian SEC against CBEX is a critical reminder of the risks posed by unregulated crypto platforms. It’s the responsibility of every crypto investor to stay vigilant and engage with registered crypto platforms to safeguard their assets. Meanwhile, the Nigerian SEC’s intensified enforcement actions demonstrate a robust regulatory approach designed to uphold market integrity and protect the interests of the Nigerian public in an evolving digital financial landscape.
Frequently Asked Questions
Is crypto regulated in Nigeria?
For years, crypto existed in a gray area in Nigeria. It’s not illegal, but it’s not quite legal either. The Central Bank of Nigeria (CBN) famously restricted crypto-related transactions in 2021, directing banks to shut down accounts associated with digital currency platforms.
Is crypto now legal in Nigeria in 2025?
When Nigeria passed the Investment and Securities Act of 2025, many took it as a green light for crypto. The law gave the Securities and Exchange Commission (SEC) formal oversight of digital assets — a signal, it seemed, that crypto trading was now legal.
Can I buy and sell crypto in Nigeria?
Nigerians can legally access crypto trading and storage through secure platforms; however, many unregistered cryptocurrency exchanges operate in the country.