SEC Nigeria Warns CBEX Over Breach of Regulatory Guidelines

• The Securities and Exchange Commission (SEC) in Nigeria has issued a warning against CBEX (Crypto Bridge Exchange), citing potential breaches of regulatory guidelines.
• CBEX promoters are allegedly demanding $200 from subscribers with balances above a certain threshold, raising concerns among investors.
• The SEC's actions have led to a request to freeze assets and ongoing regulatory action, impacting clients who have invested with CBEX.
• Lawyers and compliance officers should monitor the situation closely for potential exposure to Nigerian clients who have invested with CBEX.

The Commission has been monitoring the activities of CBEX and its promoters, who are allegedly operating under various corporate identities, including ST Technologies International Ltd and Smart Treasure/Super Technology.

The Securities and Exchange Commission (SEC) in Nigeria has issued a warning about CBEX (Crypto Bridge Exchange), an operator that has resumed activities across the country. According to media reports, CBEX promoters are demanding $200 from subscribers with balances above a certain threshold. This development has raised concerns among investors who may have deposited funds with the exchange. The SEC's attention was drawn to these reports, indicating a potential breach of regulatory guidelines.

The warning issued by the SEC is significant as it highlights the regulator's commitment to protecting investors and maintaining market integrity. In Nigeria, the operation of cryptocurrency exchanges is subject to specific regulations, which CBEX appears to have disregarded. The Commission has initiated enforcement actions against CBEX and its promoters, who are allegedly operating under various corporate identities, including ST Technologies International Ltd and Smart Treasure/Super Technology. This complexity indicates a deliberate attempt to evade regulatory scrutiny, and the SEC is collaborating with law enforcement agencies to investigate and take appropriate actions under the Investments and Securities Act 2025.

Lawyers and compliance officers should take note of the SEC's warning as it may signal potential exposure for clients who have invested with CBEX. The regulator's actions have led to a request to the Investments and Securities Tribunal to freeze assets, and further regulatory action, including arrests of promoters, is ongoing, marking a significant development in Nigeria's cryptocurrency landscape. As the regulatory environment continues to evolve, investors and businesses must remain vigilant about compliance with local laws and regulations to avoid any adverse consequences.

Lawyers and compliance officers should watch for potential exposure to Nigerian clients who have invested with CBEX, as the SEC's warning may trigger a freeze on assets or further regulatory action.

Source: Original reporting via The Securities and Exchange Commission (SEC) Nigeria