The House of Representatives has issued a stern warning to celebrities, influencers, and public figures over the promotion of unregistered investment platforms, following the collapse of CBEX, a cryptocurrency scheme that has allegedly wiped out over N1.3 trillion in Nigerian investors’ funds.
In a statement by the House Spokesman, Rep. Akin Rotimi Jr., lawmakers expressed alarm at the growing trend of financial scams disguised as digital opportunities, urging stricter compliance with the newly enacted Investments and Securities Act (ISA), 2025.
According to the House, the new ISA, signed into law by President Bola Ahmed Tinubu, criminalizes Ponzi schemes, expands the enforcement authority of the Securities and Exchange Commission (SEC), and introduces tougher penalties, including up to ten years’ imprisonment, for financial fraud.
“Promoting unregistered investment schemes now comes with serious legal consequences,” the statement reads, directly addressing celebrities and social media influencers who often lend credibility to such platforms.
CBEX’s Collapse: From High Hopes to Vanished Wallets
The CBEX scandal has sent shockwaves through the digital finance community in Nigeria. The now-defunct platform, operated by a group of foreign nationals in partnership with local collaborators, lured investors with promises of 100% returns in 30 days. Withdrawals were suddenly restricted on April 9, 2025, and users soon found their accounts wiped clean.
In a last-ditch effort before going dark, CBEX demanded users pay additional verification deposits, $100 for smaller accounts and $200 for balances above $1,000, sparking suspicions of a final cash grab. Some hopeful investors continued to join, believing the issue was a mere technical delay.
The SEC had earlier flagged CBEX’s operations as illegal, while the Economic and Financial Crimes Commission (EFCC) has now teamed up with Interpol and other global agencies to recover trapped funds and bring the perpetrators to justice.
New Law Targets Investment Fraud, Urges Public Caution
Chairman of the House Committee on Capital Market and Institutions, Rep. Solomon T. Bob (PDP, Rivers), emphasized that tackling financial fraud requires more than legal action, it demands national financial education.
“Fraudsters thrive where ignorance prevails. Financial literacy is not optional; it’s essential for building a resilient, inclusive economy,” Bob said.
The House urged Nigerians to be wary of any investment promising unusually high returns with little or no risk and encouraged them to verify all platforms through proper regulatory channels.
Furthermore, the House called on schools, faith-based institutions, media, and civil society organizations to champion financial education and raise awareness about predatory schemes.
Expressing sympathy for those affected by the CBEX collapse, lawmakers affirmed that both the EFCC and Nigeria Police are actively investigating and working to trace stolen funds.
