The Securities and Exchange Commission (SEC) has issued a renewed warning to Nigerians, urging them to report any suspicious investment schemes for prompt investigation and enforcement actions.
This warning follows the CBEX investment fraud, a digital asset trading platform accused of defrauding Nigerians of over N1.3 trillion.
In a statement released on Thursday, April 24, the SEC cautioned the public against falling for high-yield investment offers, particularly those that promise large returns with little or no risk. The Commission highlighted that fraudsters often use digital assets to make their operations appear legitimate.
According to the SEC, such illegal and unregistered schemes pose significant risks to investors and jeopardize the stability of the capital market.
“The public is strongly advised to be cautious of investment opportunities that promise guaranteed or unusually high returns with minimal or no risk,” the statement said.
The SEC also warned against platforms that offer cryptocurrency, forex trading, or blockchain-based investments without proper regulatory approval, emphasizing that “if it sounds too good to be true, it probably is.”
Referencing Section 196(3) of the Investments and Securities Act, 2025, the SEC reminded the public that operating or promoting an unregistered scheme can lead to severe penalties, including fines of up to N20 million, imprisonment for up to 10 years, or both.
To protect Nigeria’s investment environment, the SEC urged the public to report any suspicious activities and verify the registration status of investment companies or promoters through the SEC website.