The Securities Exchange Commission (SEC) has issued a stern warning to celebrities, influencers, and bloggers who promote unregistered investment schemes, stating they could face up to 10 years imprisonment under the newly enacted Investment and Securities Act (ISA) 2025.
Crackdown Following CBEX Scandal
This warning comes in the wake of the CBEX Ponzi scheme collapse that reportedly cost Nigerian investors N1.3 trillion. According to SEC Director General Dr. Emomotimi Agama, the commission is collaborating with multiple law enforcement agencies including the EFCC, Nigerian Police Force, and Interpol to investigate and prosecute those who promoted the fraudulent platform.
“We are using this medium to warn such persons to desist from promoting unregistered entities,” stated Agama, emphasizing that the SEC cannot help victims recover their losses from CBEX.
Strict Penalties Under New Legislation
The ISA 2025, enacted last month, significantly strengthens the SEC’s regulatory powers and imposes harsher penalties on financial crimes:
- Minimum fine of N20 million for promoters of fraudulent schemes
- Up to 10 years imprisonment for violators
- New regulatory framework for digital assets and virtual service providers
“Ponzi schemes will no longer be an avenue for fraudsters to deceive investors. The penalties in the new ISA are stiff enough to deter such activities, and we are committed to implementing them fully,” Agama declared.
SEC Rolls Out Preventive Measures
The SEC is implementing several strategies to protect investors which include:
- Educational campaigns across social media and podcasts
- Integration of capital market education into schools and universities
- Verification services for investment opportunities
The commission advised Nigerians to verify investment opportunities with the SEC before committing funds, warning that offers that seem “too good to be true” typically are fraudulent.
Techmetroo Tips to stay Safe.
✓ Don’t invest based on hype: Verify every opportunity with certified financial sources.
✓ If you’re sharing stuff online: Make sure it’s legit! It’s not just about clout anymore endorsement now come with legal risks and could land you in serious trouble.
✓ Stay informed: If it sounds too good to be true, it probably is. Stay Safe.
