SEC Reiterates Ban on CBEX, Warns Investors of Ongoing Ponzi Scheme Risks

The Securities and Exchange Commission (SEC) of Nigeria has today, Thursday, June 12, 2025, re-emphasized that Crypto Bridge Exchange (CBEX), also known as ST Technologies International Ltd, Smart Treasure, or Super Technology, remains unequivocally banned from operating in Nigeria. This stern warning comes amidst recent media reports suggesting that CBEX promoters are attempting to resume operations and entice old and new investors with fresh withdrawal conditions.

The SEC’s public notice, issued on Wednesday, June 11, 2025, and widely reported today, is a crucial reminder to the investing public about the severe risks associated with engaging with the platform. According to the SEC, media reports indicated that CBEX promoters were demanding $200 from subscribers with balances above $1,000 and $100 from those with less than $1,000 balances, purportedly before withdrawals could be processed.

The Commission clarified that neither CBEX nor its affiliates have ever been registered or authorized by the SEC to operate as a Digital Assets Exchange, solicit investments from the public, or perform any other function within the Nigerian capital market. This categorical statement aims to debunk any perception of legitimacy that CBEX might attempt to create.

CBEX, which began operations in Nigeria in July 2024, had gained significant popularity by promising implausibly high returns, sometimes up to 100 percent profit within 30 to 45 days, allegedly through AI-driven cryptocurrency trading. These promises, characteristic of Ponzi schemes, initially attracted thousands of unsuspecting Nigerians. However, the scheme reportedly collapsed in April 2025, wiping out an estimated N1.2 trillion (approximately $809 million) in investor funds, with many users losing access to their accounts and being unable to withdraw their investments. The Economic and Financial Crimes Commission (EFCC) has since labeled CBEX a Ponzi scheme and has been investigating its operations, declaring some of its operators wanted.

The SEC highlighted that preliminary investigations revealed CBEX engaged in promotional activities to create a false perception of legitimacy, enticing the public with unrealistic guaranteed returns. The platform subsequently failed to honor withdrawal requests and abruptly closed its physical offices amidst mounting complaints.

The Commission has warned that enforcement action has already been initiated against CBEX and its promoters following its previous unauthorized investment activities. The SEC is actively collaborating with relevant Law Enforcement Agencies to thoroughly investigate CBEX/ST Technologies International Ltd and will take appropriate actions in line with the provisions of the Investments and Securities Act 2025. Under this new Act, operators of Ponzi schemes face stringent penalties, including jail terms of up to 10 years and fines of a minimum of N20 million.

The SEC strongly advised the Nigerian public to REFRAIN from patronizing or transacting any investment-related business with CBEX /ST Technologies International Ltd (Smart Treasure or Super Technology), as they risk losing their funds. Investors are urged to always verify the registration status of any investment platform through the Commission’s dedicated portal, www.sec.gov.ng/cmos, before committing their funds. The SEC reiterated its commitment to protecting investors and maintaining the integrity of the Nigerian capital market.