The Securities and Exchange Commission (SEC) has issued a strong warning to influencers amid the CBEX ponzi scandal. Regulators have advised influencers, celebrities, and bloggers to avoid promoting unregistered investment schemes.
This advice follows the CBEX scandal, where unsuspecting Nigerians lost N1.3 trillion. Public figures had endorsed the fraudulent scheme, which drew in many victims.
Under the new Investment and Securities Act (ISA) 2025, authorities will apply serious penalties. They may fine violators N20 million or imprison them for up to 10 years.
Dr. Emomotimi Agama, the SEC’s Director General, confirmed that these new measures are part of a wider enforcement effort. As a result, assistance could not be provided to CBEX victims due to the scheme’s unregistered nature.
The Nigerian Police Force, Interpol, and the EFCC are carrying out investigations. Authorities expect to file more charges.
Authorities are urging bloggers and influencers to verify investment platforms. Promoting unregistered investment schemes will now carry legal consequences. Agama made it clear that authorities will hold offenders accountable and enforce the full weight of the law. License revocations and operator suspensions will continue.
“We are, therefore, using this medium to warn such persons to desist from promoting unregistered entities,” he said.
The SEC confirmed that the recent license revocations, market operator suspensions, and crackdowns on unregistered entities are only the beginning of a broader enforcement strategy. Following the enactment of ISA 2025 last month, the SEC launched a broader enforcement strategy aimed at strengthening its commitment to cleaning up the investment industry. Furthermore, the Commission emphasized that more decisive actions are already underway. Promoters of fraudulent schemes would be subject to severe penalties under the new law, which include a minimum fine of N20 million and a 10-year jail sentence.
“Ponzi schemes will no longer be an avenue for fraudsters to deceive investors. The penalties in the new ISA are stiff enough to deter such activities, and we are committed to implementing them fully. We will shut down their operations, and the promoters will be made to face the full weight of the law,” he said.
As the recent collapse of CBEX further highlighted the severity of the problem, the Director General stated that the SEC had previously dealt with similar schemes. Moreover, he emphasized that the Commission would continue to do so by utilizing the new powers afforded by ISA 2025 to safeguard investors and improve the market.
Digital asset platforms must also register under ISA 2025. The SEC has officially recognized virtual assets for the first time. This closes earlier legal loopholes that dishonest operators took advantage of.
The SEC has committed to protecting investors and maintaining market integrity. It is introducing educational programs in schools and universities.
Officials have urged Nigerians to verify every investment directly with the SEC. If a scheme seems too good to be true, then it probably is.
The CBEX collapse has exposed deep flaws in public financial awareness. Influencer recommendations, vague operations, and unrealistic profits are all red flags.
Ponzi schemes promise high returns with little risk. They often lack transparency and reward user referrals.
To stay safe, investors must research thoroughly and ask the right questions. Investors must clearly understand the legal status and risks of any scheme.
