The Securities and Exchange Commission has issued a strong warning to celebrities and social media influencers, urging them to stop promoting unregistered digital platforms and meme coins following the recent crash of the CBEX cryptocurrency trading platform. The commission said such promotions pose serious risks to Nigerians and violate the new Investments and Securities Act signed into law by President Bola Tinubu.
This warning came shortly after CBEX users were locked out of their accounts and left unable to recover their funds. In response to the loss, angry investors stormed the Ibadan office of Smart Treasure, a company linked to the collapsed platform, damaging property and demanding answers.
The Director-General of the SEC, Emomotimi Agama, expressed deep concern over the growing trend of public figures endorsing questionable digital assets. He explained that the new legislation spells out rules for digital asset operations, including mandatory registration, to bring transparency and public confidence to the crypto space.
Agama emphasized that the law empowers the SEC to act decisively against illegal financial activities such as Ponzi schemes, pump-and-dump coin offerings, and exchanges operating without approval. He cautioned that no one is exempt from the law—not even celebrities—when it comes to influencing the public with unregulated financial products.
He made it clear that any platform or digital asset not officially registered with the SEC is considered illegal. Agama stressed that enforcement will follow, and violators will be held accountable regardless of their social standing.
He reiterated that while the government supports financial technology and digital asset innovation, it must be done within legal frameworks to protect Nigerians from fraud and exploitation.
