SEC Nigeria Warns Investors: Fraudulent Schemes Cost N2.4 Billion
The Securities and Exchange Commission of Nigeria (SEC Nigeria) has issued a stern warning to investors about fraudulent schemes, including unregistered digital asset platforms and Ponzi schemes. This comes after the enactment of the Investments and Securities Act, 2025, which criminalizes such activities with severe penalties.
The SEC Nigeria has sounded the alarm on scams using AI-driven fake endorsements, with investors losing a staggering N2.4 billion ($1.48 billion) on the unregistered CBEX platform alone. Kenyan users have also fallen victim, with their crypto accounts completely emptied. The commission has urged prospective investors to verify the registration status of financial institutions using its official database at https://sec.gov.ng/cmos.
Fraudulent organizations and individuals are luring investors with promises of high, guaranteed returns and minimal risk, often operating outside regulatory frameworks. The SEC has postponed the issuance of new provisional licenses to cryptocurrency startups due to the need for further due diligence.
The SEC Nigeria has emphasized the importance of regulatory compliance for the integrity and stability of Nigeria's capital markets. Investors are advised to exercise caution and carry out proper due diligence before investing in any scheme. The commission remains committed to combating fraudulent activities and protecting investors' interests.
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