The Securities and Exchange Commission (SEC) Nigeria has once again raised the alarm over the rising tide of illegal investment schemes, officially naming 10 platforms involved in fraudulent operations as of 2025. Among those flagged are CBEX, Tofro.com, and ZugaCoin—platforms the commission says are not registered or licensed to solicit investments from the Nigerian public.

In a statement issued this week, the SEC warned that these entities operate outside regulatory oversight and promise unsustainable returns, luring unsuspecting Nigerians into what are essentially Ponzi or pyramid schemes. The commission advised citizens to exercise extreme caution and to verify the registration status of any investment company through official SEC channels before committing their funds.

The Rise of Ponzi Schemes in Nigeria

Ponzi schemes have become increasingly prevalent in Nigeria, often taking advantage of economic uncertainty, unemployment, and a growing appetite for passive income. These fraudulent operations typically promise unrealistic returns sometimes up to 100% profit within days or weeks—without any legitimate business model or revenue stream.

Once a critical mass of investors joins and funds the operation, the founders either vanish or collapse the scheme, leaving thousands of victims in financial ruin. According to the SEC, millions of naira have already been lost in 2025 to unregulated platforms that exploit public trust through aggressive online marketing, fake testimonials, and influencer endorsements.

The 10 Flagged Platforms

Although the list may grow as investigations continue, the SEC has confirmed the following 10 entities as unregistered and illegal:

1. 1. CBEX – www.cbexglobal.com (Warning: flagged by SEC)

   2. Tofro.com – www.tofro.com (Warning: flagged by SEC)

   3. ZugaCoin – www.zugacoin.io (Warning: flagged by SEC)

   4. HyperChain Assets – www.hyperchainassets.com

   5. NG Boosters – www.ngboosters.org

   6. FlexInvests – www.flexinvests.com

   7. NovaWise Global – www.novawiseglobal.com

   8. BitPlaza Ventures – www.bitplazaventures.com

   9. QuantumLink Trade – www.quantumlinktrade.com

   10. MegaYield Africa – www.megayieldafrica.com

   Disclaimer: The URLs above are listed for public awareness only. These platforms have been flagged by the Securities and Exchange Commission of Nigeria for operating without regulatory approval. Do not engage with these sites or provide personal/financial information.

These platforms have been found guilty of soliciting public investment without registration, often operating through social media channels, mobile apps, and referral-based schemes. The SEC noted that some even falsely claim to be licensed or affiliated with international financial institutions.

SEC’s Advisory: How to Spot a Ponzi Scheme

To protect the public, the SEC has outlined clear red flags that typically characterize fraudulent investment operations:

• Guaranteed high returns with little or no risk

• Lack of clear business models or operational transparency

• Pressure to recruit new members to earn income

• No registration with the SEC or any recognized financial regulator

• Anonymous or unverifiable founders and directors

The Commission strongly recommends that Nigerians cross-check all investment offers via the SEC’s official website (www.sec.gov.ng) or through their Investor Protection Department.

Public Education and Enforcement

In response to the surge in digital fraud, the SEC has ramped up its investor education campaigns, collaborating with financial institutions, civil society, and media organizations to inform the public about the risks of unregulated platforms.

At the same time, the commission is working closely with the Economic and Financial Crimes Commission (EFCC) and other law enforcement agencies to track, investigate, and prosecute operators of illegal schemes. Victims are encouraged to report any suspicious platforms or activities to SEC’s whistleblower channels.

Economic and Social Impact

Ponzi schemes not only lead to individual financial losses, but also undermine confidence in legitimate financial markets. Many victims, often low- to middle-income earners, borrow money or liquidate assets in pursuit of quick returns, only to be left in deeper financial distress.

Moreover, the ripple effect on families, small businesses, and even cooperative societies is significant. Experts warn that if left unchecked, such schemes could discourage long-term investment culture in Nigeria, which is essential for economic growth.

Conclusion: Caution Is the Best Investment

As the digital space continues to expand and more Nigerians explore alternative income sources, the risk of encountering fraudulent schemes also increases. The recent warning by the SEC serves as a crucial reminder that not every opportunity is what it claims to be.

Nigerians are urged to do their due diligence, seek professional financial advice, and engage only with regulated platforms. In today’s financial landscape, caution is no longer optional—it is essential.

Published on Xamblog.com – Delivering trusted insights on financial safety, economic trends, and public awareness across Africa.