SEC to Freeze CBEX Accounts as N1.3tn Crypto Scam Unravels

By Oluwakemi Kindness

Nigeria’s Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal to freeze all bank accounts linked to Crypto Bridge Exchange (CBEX) and 25 others over unlawful crypto investment scheme.

The request, filed under suit IST/OA/02/2025, seeks to stop CBEX and its promoters from accessing funds allegedly collected from the public through an unregistered digital investment platform. The SEC told the Tribunal that CBEX operated illegally, promising unrealistic returns of 100% within 30 days, a direct violation of Section 3(b) of the Investments and Securities Act 2025.

The regulator explained that Hong Kong’s Securities and Futures Commission had, as far back as April 2024, issued an advisory warning that CBEX was a “suspicious virtual asset company” using a misleading name similar to a Chinese trading organisation.

CBEX entered the Nigerian market in mid-2024 through a website and mobile app, claiming to deploy advanced AI to generate huge crypto profits.

It promised investors double returns within a 40–45 day cycle.

The platform has since collapsed, exposing what authorities now identify as a Ponzi scheme with estimated losses of over N1.3 trillion.

Tribunal Orders Notice via Newspapers

After CBEX failed to appear or send legal representation, Tribunal Chairman Hon. Aminu Jinaidu ordered that hearing notices be served via national newspapers.

Jinaidu is also presiding over several other capital market-related cases, including disputes involving the SEC, Benue Investments Property Company, Maven Asset Management, and First Registrars.

Next Hearing

The matter has been adjourned to January 27, 2026.