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The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning against Crypto Bridge Exchange (CBEX) for operating without regulatory approval, raising significant concerns about investor protection and market integrity.
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Despite previous enforcement actions, CBEX, also known as ST Technologies International Ltd, continues to solicit unauthorized payments from users attempting to withdraw their funds, highlighting ongoing regulatory challenges in Nigeria’s crypto space.
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According to a COINOTAG report, the SEC emphasized that CBEX’s demand for withdrawal fees violates the Investments and Securities Act 2025, urging the public to avoid transactions with the platform to prevent potential financial losses.
Nigerian SEC warns against unlicensed Crypto Bridge Exchange, citing unauthorized withdrawal fees and ongoing investigations to protect investors and uphold market regulations.
Regulatory Crackdown on Crypto Bridge Exchange Highlights Compliance Risks
The Nigerian SEC’s recent advisory underscores the critical importance of regulatory compliance within the country’s emerging cryptocurrency market. Crypto Bridge Exchange, operating under multiple aliases such as Smart Treasure and Super Technology, has resumed activities despite lacking official registration. This defiance not only breaches the Investments and Securities Act 2025 but also exposes investors to significant financial risks. The SEC’s proactive stance reflects a broader effort to enforce market discipline and protect retail investors from unregulated entities exploiting the growing demand for digital assets.
Unauthorized Withdrawal Fees and Investor Impact
CBEX’s practice of charging users $200 for balances above $1,000 and $100 for smaller amounts before permitting withdrawals is a clear violation of Nigerian securities law. This fee structure, imposed without regulatory sanction, has drawn sharp criticism from both authorities and affected users. The SEC’s advisory explicitly warns that such demands are illegitimate and may constitute fraudulent activity. Investors are advised to exercise caution and verify the registration status of crypto platforms before engaging in any financial transactions to avoid falling victim to similar schemes.
Historical Context: CBEX’s Troubled Operations and Investor Fallout
Earlier in the year, CBEX faced severe backlash after suspending withdrawals and reporting a so-called “security breach,” which led to user account balances being wiped out. The incident culminated in a public outcry, including the looting of the exchange’s office by disgruntled investors. Videos circulating on social media depicted individuals devastated by losses, some amounting to millions of naira, underscoring the human cost of regulatory lapses in the crypto sector. This episode has intensified calls for stronger oversight and more stringent enforcement mechanisms to prevent recurrence.
Ongoing Investigations and Enforcement Measures
The SEC has confirmed collaboration with law enforcement agencies to investigate CBEX’s activities comprehensively. These efforts aim to hold the company and its promoters accountable for their unauthorized investment schemes and to recover funds where possible. The regulatory body’s commitment to pursuing legal action signals an increasing intolerance for non-compliant operators and reinforces Nigeria’s dedication to fostering a secure and transparent financial ecosystem for cryptocurrency investors.
Conclusion
The Nigerian SEC’s renewed warning against Crypto Bridge Exchange serves as a critical reminder of the risks posed by unregulated crypto platforms. Investors must remain vigilant and prioritize engagement with registered entities to safeguard their assets. Meanwhile, the SEC’s intensified enforcement actions demonstrate a robust regulatory approach designed to uphold market integrity and protect the interests of the Nigerian public in an evolving digital financial landscape.
