The Home of Representatives on Thursday has cautioned public figures, celebrities and influencers in opposition to selling unregistered funding schemes amid the collapse of a fraudulent cryptocurrency funding scheme generally known as “CBEX”.
The lawmakers, in a press release by Rep. Akin Rotimi, Jr., Spokesman, Home of Representatives, highlighted that below the brand new Investments and Securities Act(ISA), selling unregistered funding schemes might entice legal responsibility in opposition to any of them discovered wanting.
They expressed deep concern over alarming stories on the collapse of CBEX, which has reportedly trapped funds belonging to hundreds of Nigerians, with monetary publicity estimated to exceed N1.3 trillion.
Nairametrics beforehand reported that the Securities and Alternate Fee (SEC) had reacted to the operations of CBEX, a digital asset buying and selling platform in Nigeria, saying any such platform not registered with the SEC is against the law.
Not too long ago, the Financial and Monetary Crimes Fee (EFCC) reacted to the event, vowing to recuperate Nigerians’ misplaced investments by way of collaboration with Interpol and different worldwide businesses.
“By way of these reforms, the investor safety duty of the SEC has been enhanced, reinforcing its mandate to defend Nigerians from fraudulent funding actions,” the Home emphasised.
“Residents should stay vigilant to the hallmarks of fraud, particularly guarantees of excessive returns with little or no threat.
“Moreover, public figures, celebrities, and influencers are reminded of their civic and authorized duties.
“Beneath the brand new ISA, selling unregistered funding schemes might entice legal responsibility for aiding monetary misrepresentation and shopper deception,” the assertion partly reads.
“We should proceed to confront monetary fraud with the total weight of the regulation. However past enforcement, we should put money into public consciousness. Monetary literacy isn’t optionally available; it’s important in constructing a resilient, inclusive financial system. Fraudsters thrive the place ignorance prevails,” Chairman of the Home Committee on Capital Market and Establishments, Rep. Solomon T. Bob (PDP, Rivers), remarked within the assertion.
CBEX is a digital funding platform operated by a gaggle of international nationals in partnership with Nigerian collaborators that reportedly collapsed on Monday, leaving hundreds of traders stranded and unable to entry their funds.
The platform, which had promised 100% returns inside 30 days by way of on-line buying and selling, first restricted withdrawals on April 9, 2025. Many customers initially believed the difficulty was a brief glitch—till their account balances out of the blue vanished.
In a shocking twist, affected customers have been instructed to deposit extra funds—at the very least $100—as a way to regain entry to their accounts. For these with balances above $1,000, the required deposit was set at $200.
Shortly earlier than shutting out its subscribers, CBEX issued a message stating:
“All accounts must bear the next verification steps to make sure their authenticity. For accounts with funds beneath $1,000 earlier than any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required. Moreover, please preserve your deposit receipts to make sure you can show the authenticity of the account throughout future withdrawal opinions.”
Regardless of indicators of hassle, a number of new customers reportedly signed up after the withdrawal restriction, believing it was a technical delay that may be resolved inside days.
