Following the collapse of the Crypto Bridge Exchange (CBEX), Nigeria’s Economic and Financial Crimes Commission (EFCC) initially denied responsibility for regulating such entities — despite having previously issued the company a SCUML certificate. It later declared CBEX’s founders wanted for fraud and related offences.
The Securities and Exchange Commission (SEC), which holds the legal mandate to regulate investment platforms and digital exchanges in Nigeria, confirmed that CBEX — even under its registered name with the Corporate Affairs Commission (CAC) — had never been licensed. As such, it was operating illegally.
FIJ verified this by cross-referencing CBEX’s listed entities with the SEC’s official investment register — no match was found.
CBEX had marketed itself as a global digital asset exchange, luring investors with promises of up to 100% monthly returns. When it abruptly froze withdrawals due to an alleged “security breach” and shut down its Ibadan office, investors had already lost an estimated $6 million.
Its founders may have violated multiple provisions of the amended Investments and Securities Act (ISA) 2007 (amended 2025), which criminalizes the operation of unregistered investment schemes. Under Sections 67(1) and 68, such offences carry penalties of up to 10 years imprisonment, fines of up to ₦40 million, or both.
The SEC has repeatedly issued public warnings cautioning Nigerians against engaging with unregistered investment entities. Despite this, FIJ discovered that many such platforms continue to operate and promote their services across social media.
Other Platforms Operating Illegally Without SEC Registration
MTS/TOFRO
MTS/TOFRO is a crypto trading platform traced by FIJ to a Harris Levy, reportedly based in Denver, USA. It began promotion as far back as 2022, including a sponsored article on Vanguard. The platform claims to operate a $30 million secure trading fund and uses referral bonuses and private trading signals to attract clients.
FIJ found no evidence of SEC registration for MTS/TOFRO. Complaints about the platform appeared on X (formerly Twitter) in April, yet promotional activity continues unchallenged — including a recent video ad featuring a spokesperson before a branded backdrop.
Under Nigeria’s ISA 2025, digital asset platforms must register with the SEC or risk enforcement actions.
QC Investment Limited
QC Investment presents itself as a portfolio management and fintech innovation firm, claiming operations since 2008. Its Facebook account was active as recently as April 23, and its LinkedIn profile lists “portfolio investments” as a key service.
FIJ could not locate QC Investment Ltd in the SEC’s registry. Its website lacks transparency regarding asset management, licensing, or investor protections. Even in the absence of reported fraud, its lack of regulatory approval renders it illegal under Nigerian law.
Crown Crest Investment
Operating out of Ikeja, Lagos, Crown Crest advertises local and international real estate investment options. It maintains an active Instagram presence with over 1,200 followers and recent posts as of April 23.
The firm’s marketing has built public trust, amplified by individuals promoting its content across social media. However, Crown Crest is also missing from the SEC’s database of licensed investment companies, making its operations non-compliant with Nigerian regulations that require registration for public fundraising ventures.
Stecs Alausa Multipurpose Cooperative Society
Though Stecs is legally registered as a cooperative society under Lagos State law (registration number LSCS 18966), its operations extend beyond the scope of a typical cooperative. It claims partnerships with Providus Bank and offers Islamic finance products via the “Stecs Commodity Mudarabah Investment Series I” — a scheme promising high fixed returns tied to agricultural commodities.
The SEC has flagged Stecs for offering public investment products without the required licensing. Under Nigerian law, even cooperative societies must seek SEC authorization if they offer investments with guaranteed returns.
Previously Blacklisted Platforms
The SEC has in the past blacklisted several high-risk investment outfits, including:
RiseVest Technologies Limited
Provest
MyShare
Prime Invest (primeinv.co)
FX Bosed
Digitrades
Many of these platforms operated as unregistered e-commerce or binary trading sites, often luring users with unrealistic returns before disappearing with deposits. Prime Invest and Digitrades, for instance, were blacklisted in April 2023.
Investors in these unregulated platforms often face severe losses with little to no legal recourse.
Conclusion:
The CBEX saga is not isolated. As these case studies show, several other platforms continue to flout Nigeria’s investment laws by operating without SEC approval. The public is urged to verify any investment platform against the SEC’s registry and be cautious of offers that promise unusually high returns.
Source: FIJ.ng
