Regulators have moved decisively against Crypto Bridge Exchange (CBEX) as the Securities and Exchange Commission (SEC) asks the Investments and Securities Tribunal (IST) to shut down the alleged unlawful operations of the digital asset platform and secure assets linked to what authorities describe as one of the largest investment scams in Nigeria’s history.
During the inaugural sitting of the sixth Tribunal in the case IST/OA/02/2025: SEC & Anor v. Crypto Bridge Exchange (CBEX) and 25 Others, presided over by Tribunal Chairman Hon. Aminu Jinaidu, the SEC pressed for an immediate freezing of all bank accounts tied to the defendants. The Commission argued that the measure was necessary to prevent further dissipation of funds believed to have been collected fraudulently from the public.
Beyond the account freeze, the SEC also asked the Tribunal to authorise the seizure of houses and other assets allegedly purchased with proceeds from the scheme. According to the Commission, CBEX operated while posing as a legitimate digital assets and capital market operator but never registered with the SEC as required under Nigerian law.
The regulator stressed that CBEX enticed unsuspecting Nigerians with promises of extraordinary profits. It cited the platform’s guaranteed 100 percent return within 30 days as a blatant violation of Section 3(b) of the Investments and Securities Act 2025. The Commission further revealed that the platform had attracted international concern long before its collapse, noting that the Securities and Futures Commission of Hong Kong had issued a public advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset entity. The advisory also pointed out that CBEX mimicked the name of a reputable Chinese property rights trading organisation without any legitimate affiliation.
The Tribunal observed that none of the 26 defendants—including CBEX itself—appeared for the hearing or sent legal representation. In response, Hon. Jinaidu ordered that hearing notices be served through national newspapers to ensure they are properly notified before further proceedings.
CBEX made its entry into the Nigerian market around July 2024, operating via a website and mobile app. It aggressively marketed itself as a crypto-trading platform powered by advanced Artificial Intelligence capable of generating unusually high returns. Investors reported being promised profits of up to 100 percent within a 40–45 day lock-in period—returns that investigators now say were impossible and indicative of a classic Ponzi structure.
The platform imploded only months later, leaving widespread financial ruin in its wake. Testimonies and early investigative findings suggest that CBEX siphoned an estimated N1.3 trillion (about $800 million) before disappearing from the market and shutting down its online presence.
With the alleged operators still at large and thousands of Nigerians seeking redress, the Tribunal’s intervention marks a critical stage in what may become a landmark enforcement case. The matter has been adjourned to January 27, 2026, when the Tribunal is expected to consider further applications and review compliance with its service directives.