Ponzi Scheme: SEC to seize CBEX’s N1.3tr cash
Apex Capital Market regulator, The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to order the freezing of bank accounts belonging to Crypto Bridge Exchange (CBEX) and 25 other defendants alleged to have operated an unlawful digital asset investment scheme that defrauded Nigerians of about N1.3 trillion.
The request was made during the first sitting of the sixth Tribunal in the case IST/OA/02/2025: Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 Others, presided over by the Tribunal Chairman, Hon. Aminu Jinaidu.
SEC urged the Tribunal to compel commercial banks and other financial institutions in Nigeria to immediately freeze all accounts linked to the defendants.
The Commission also sought orders for the seizure of houses and other assets allegedly acquired with funds sourced from unsuspecting members of the public who invested through CBEX.
According to SEC, CBEX operated illegally by posing as a digital assets platform and capital market operator despite failing to register with the Commission.
The regulator said the platform lured investors with unrealistic offers. “CBEX is an unregistered platform promising its users 100 percent return on investments within 30 days, which is unlawful and contrary to Section 3(b) of the Investments and Securities Act 2025,” SEC submitted.
The Commission further told the Tribunal that international regulators had previously flagged the platform. It disclosed that the Securities and Futures Commission of Hong Kong issued an advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset entity.
According to the advisory, the platform used a name resembling that of a genuine property rights trading organisation in China, despite having no affiliation with it.
The Tribunal noted that CBEX and the other defendants failed to appear and were not represented in court. As a result, Hon. Jinaidu ordered that hearing notices be served on the defendants through national newspapers.
CBEX entered the Nigerian market around July 2024, operating through a website and mobile application. The company claimed to use advanced Artificial Intelligence to generate unusually high profits from cryptocurrency trading. Investors were promised returns of up to 100 per cent within a 40- to 45-day lock-in period.
The scheme collapsed months later, triggering widespread losses. Investigations and testimonies from affected investors revealed that CBEX functioned as a Ponzi scheme that siphoned over N1.3 trillion (approximately $800 million) from the public before disappearing.
The matter was adjourned to January 27, 2026.
