CBEX Accounts at Risk as SEC Acts on N1.3trn Scandal

The Securities and Exchange Commission (SEC) has approached the Investments and Securities Tribunal (IST) seeking an order to freeze the bank accounts of Crypto Bridge Exchange (CBEX) and 25 associated defendants allegedly involved in an unlawful digital asset investment scheme that reportedly defrauded Nigerians of about N1.3 trillion.

The request was made during the first sitting of the sixth Tribunal in case IST/OA/02/2025, SEC & Anor v Crypto Bridge Exchange (CBEX) and 25 Others, presided over by Tribunal Chairman, Hon. Aminu Jinaidu, on Wednesday.

SEC, through its submissions, urged the Tribunal to compel commercial banks and other financial institutions to immediately block all accounts linked to the defendants. The Commission is also asking for interim orders enabling the seizure of houses and other assets suspected to have been acquired with funds allegedly taken from unsuspecting investors who participated in the scheme.

According to the Commission, CBEX operated illegally by presenting itself as a digital asset investment platform and capital market operator despite being unregistered. The regulator stated that the company lured Nigerians with unrealistic offers, promising returns of up to 100 percent within 30 days — a practice it said violates Section 3(b) of the Investments and Securities Act 2025.

SEC also informed the Tribunal that international regulators had previously raised concerns about the platform. In April 2024, the Securities and Futures Commission of Hong Kong issued an advisory listing CBEX as a suspicious virtual asset entity, warning that it bore a misleading resemblance to a legitimate Chinese organisation despite having no affiliation with it.

The Tribunal noted that CBEX and the 25 other defendants were absent during the proceedings and were not represented by counsel. Following this observation, Hon. Jinaidu directed that hearing notices be served on them through national newspapers to ensure proper notification.

CBEX, which entered the Nigerian market around July 2024, operated through a website and mobile application and claimed to use advanced Artificial Intelligence to generate high-profit cryptocurrency trades. It promised investors returns of up to 100 percent within a 40–45-day lock-in period, attracting thousands of participants across the country.

However, the scheme reportedly collapsed months later, leaving many investors stranded. Preliminary findings and victim testimonies indicated that the operation functioned as a Ponzi scheme, allegedly siphoning more than N1.3 trillion — estimated at roughly $800 million — before disappearing from the market.

The Tribunal adjourned the matter to January 27, 2026, for continuation of hearing.