SEC Issues Jail Threat: Celebrities & Influencers Face 10 Years for Promoting Ponzi Schemes Like CBEX

The Securities and Exchange Commission (SEC) has issued a serious warning to social media influencers, celebrities, and bloggers about promoting unregistered investment schemes. Under Nigeria’s new Investment and Securities Act (ISA) 2025, anyone caught advertising these illegal schemes could face up to 10 years in prison.

This warning comes after the recent collapse of CBEX, a suspected Ponzi scheme that reportedly took over N1.3 trillion from Nigerian investors. Many victims were tricked into investing because famous people and influencers promoted the scheme to their followers.

SEC Cannot Get Money Back for Victims

The Director General of SEC, Dr. Emomotimi Agama, explained that while the commission is working hard to catch and punish those responsible for these scams, they cannot help victims recover their lost money. This makes it even more important for people to be careful before investing in any opportunity.

New Strict Punishments for Fraud

The ISA 2025 law introduces tough new rules to stop investment scams:

• Anyone promoting unregistered schemes can be fined at least N20 million

• They may also be sent to prison for up to 10 years

• All illegal investment operations will be shut down immediately

Dr. Agama said: “We are sending a clear message – promoting fake investments is now a serious crime that can lead to long prison sentences. Ponzi schemes will not be tolerated anymore.”

Police and EFCC Working Together

The SEC is working closely with security agencies including:

• The Economic and Financial Crimes Commission (EFCC)

• The Nigerian Police Force

• Interpol

These agencies are investigating everyone involved in the CBEX scam, including the people who ran it and the celebrities who promoted it.

New Rules for Cryptocurrency and Online Investments

For the first time, the new law brings cryptocurrency platforms under SEC control. This means:

• All digital money exchange platforms must register with SEC

• They must follow strict rules to prevent fraud

• SEC will regularly check these platforms

This change closes loopholes that scams like CBEX used to operate illegally.

How to Spot a Fake Investment

The SEC advises Nigerians to watch for these warning signs of a scam:

1. Promises of very high profits with no risk

2. Pressure to bring in new investors

3. No clear explanation of how the business makes money

4. Not registered with the SEC

Dr. Agama warned: “If an investment sounds too good to be true, it probably is. Always check before you invest your money.”

How to Protect Yourself

To avoid losing money to scams, the SEC recommends:

• Always check if an investment company is registered with SEC

• Talk to a licensed financial advisor before investing

• Don’t make quick decisions because a celebrity promotes it

• Report any suspicious schemes to authorities immediately

Financial Education for Nigerians

The SEC is working to educate Nigerians about safe investing through:

• Special programs in schools and universities

• Social media campaigns

• Podcasts explaining investment risks

The goal is to help people make smarter decisions with their money.

Why This Matters Now

The CBEX case shows how dangerous investment scams can be. Many hardworking Nigerians lost their savings because they trusted the wrong people.

With the new ISA 2025 law, the government is taking strong action to:

• Protect ordinary investors

• Punish fraudsters severely

• Make Nigeria’s financial system safer

Final Warning from SEC

Dr. Agama ended with this important message: “We want everyone to understand – if you promote illegal investment schemes, you will face serious consequences. The days of getting away with these crimes are over.”

For regular Nigerians, the lesson is clear: Always verify before you invest, and never trust offers that promise easy money.