Ponzi Scheme: SEC moves to freeze CBEX’s N1.3trn, seize properties, other assets over alleged fraud

*Nigeria’s Securities and Exchange Commission asks the Investments and Securities Tribunal to order the freezing of bank accounts belonging to illegal Crypto Bridge Exchange (CBEX), and 25 other defendants over alleged operation of unlawful digital asset investment scheme in the country

Isola Moses | ConsumerConnect

The Securities and Exchange Commission (SEC) has petitioned Nigeria’s Investments and Securities Tribunal (IST) to order the freezing of bank accounts belonging to Crypto Bridge Exchange (CBEX), and 25 other defendants over alleged operation of unlawful digital asset investment scheme in the West African country.

ConsumerConnect had reported that CBEX defrauded millions of Nigerian of estimated N1.3 trillion investments that disappeared into the thin air.

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Following the incident earlier in the year, several consumers lost various sums of money to the firm’s voodoo investment arrangement at the time.

SEC made the request to seize CBEX money in banks 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.

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It was gathered Hon. Aminu Jinaidu, Chairman of the Tribunal, presided over the session.

SEC prayed the Tribunal to compel commercial banks and Other Financial Institutions (OFIs) in Nigeria freeze all accounts linked to the defendants immediately.

CBEX operated in Nigeria illegally, insists SEC

Jinaidu also noted that SEC sought orders for the seizure of landed properties, 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 Capital market regulator said the CBEX fraudulent platform lured several investors with unrealistic offers in Nigeria.

It further stated: “CBEX is an unregistered platform promising its users 100 percent returns on investments within 30 days, which is unlawful and contrary to Section 3(b) of the Investments and Securities Act 2025.”

The Commission further informed the Tribunal that international regulators had previously flagged the CBEX platform for similar fraudulent scheme.

According to SEC, the Securities and Futures Commission of Hong Kong issued an advisory April 23, 2024, warning that CBEX was a suspicious virtual asset entity.

In the advisory, SEC as well noted that CBEX deployed the platform, used a name resembling that of a genuine property rights trading organisation in China, despite having no affiliation with it.

The Tribunal equally observed that CBEX, and the other defendants failed to appear and were not represented in the Nigerian court.

Hon. Jinaidu subsequently ordered that hearing notices be served on the defendants through national newspapers.

The court later adjourned the matter to January 27, 2026.

Insight into CBEX operations in digital space

CBEX entered the Nigerian market around July 2024, and operated through a Web site and mobile application.

The company had claimed to use advanced Artificial Intelligence (AI) to generate unusually high profits from cryptocurrency trading.

The platform promised investors mouth-watering returns of about 100 per cent within a 40- to 45-day lock-in period, according to reports.

The scheme, however, suddenly, collapsed months later, triggering widespread losses in the digital assets investment ecosystem in the country.

Investigations and testimonies from badly affected investors indicated that CBEX functioned as a Ponzi scheme that siphoned over N1.3 trillion (approximately $800 million) from the public before disappearing.

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