Sources within the CBEX trading community confirmed to The PUNCH on Wednesday that the platform has quietly reactivated its services, allowing new users to register, trade, and withdraw profits. This resumption occurs while the Securities and Exchange Commission (SEC) has declared CBEX illegal, and the Economic and Financial Crimes Commission (EFCC) continues its probe into the platform's collapse in April.
According to these sources, CBEX has initiated an insurance verification process and an external audit of its financial records, conducted by a UK-based insurance firm, to ascertain the actual financial losses incurred. Existing investors, who have faced weeks of fund inaccessibility, are reportedly slated to begin withdrawing their capital starting June 25, 2025, upon the anticipated completion of the audit.
This development unfolds against a backdrop of strong regulatory condemnation. The SEC has explicitly labeled CBEX an illegal operation, while the EFCC has declared eight individuals wanted in connection with the alleged fraudulent scheme. CBEX, which promised investors a staggering 100 per cent profit within 30 days through purported AI trading, commenced operations in 2024, securing registration from the Corporate Affairs Commission (CAC) and the EFCC's Special Control Unit Against Money Laundering (SCUML). However, the platform's sudden collapse on April 14, 2025, allegedly resulted in losses totaling N1.2tn for an estimated 600,000 Nigerians.
In response, the EFCC intensified its efforts, with a key figure and trader on the platform, Adefowora Abiodun, voluntarily surrendering for interrogation on Monday. Simultaneously, the SEC issued stern warnings to the public, urging extreme caution and advising against engaging with investment platforms promising unrealistic returns under the guise of digital trading.
Despite these regulatory red flags, fresh reports indicate that CBEX continues to attract new users with promises of swift profits. Sources reveal that withdrawal options have been reactivated for new accounts, allowing immediate access to funds. However, funds in older accounts, allegedly wiped out following a purported AI trading loss on April 14, remain inaccessible for the time being.
CBEX promoters are reportedly attempting to distance the platform from allegations of fraud and association with Ponzi schemes. They claim the ongoing audit aims to reconcile discrepancies in old accounts, asserting that the publicized N1.2tn loss is significantly inflated, pegging the actual figure closer to N126bn. They are also requiring previous investors to inject additional capital for their old account balances to be restored, with subsequent withdrawals from these restored balances scheduled to commence in phases from June 25th.
Meanwhile, the EFCC has broadened its investigation by declaring a foreign national, Elie Bitar, wanted for his alleged involvement in the CBEX cryptocurrency investment fraud. The Nigerian Financial Intelligence Unit (NFIU) has also issued a strong advisory, cautioning Nigerians against unregulated digital asset investment platforms exhibiting characteristics of Ponzi and pyramid schemes, specifically naming several platforms including eWealth Connect, WWCoin (TOFRO), Delux, and ADK.
The NFIU highlighted red flags such as guaranteed high returns, reliance on referrals, opaque business models, and pressure to act quickly as common indicators of fraudulent schemes. The SEC Director-General, Dr Emomotimi Agama, further warned that CAC and SCUML registration does not legitimize investment schemes and emphasized the severe penalties, including hefty fines and lengthy jail terms, предусмотренные in the recently enacted Investments and Securities Act for involvement in Ponzi schemes. He urged Nigerians to always verify the registration status of investment platforms with the SEC before investing.
The unfolding situation with CBEX underscores the persistent risks associated with unregulated digital investment platforms and the ongoing challenges for regulatory agencies in protecting investors from potentially fraudulent schemes. The platform's defiant resumption of operations, coupled with the continued attraction of new users, highlights the need for increased public awareness and vigilance in navigating the complex landscape of digital finance.