Nigeria’s Securities and Exchange Commission (SEC) has intensified its crackdown on Crypto Bridge Exchange (CBEX), securing an order to freeze all bank accounts and confiscate assets linked to the digital-asset platform, which is accused of orchestrating one of the country’s largest Ponzi-style investment scams—allegedly worth about ₦1.3 trillion.
The directive was issued during the maiden sitting of the 6th Investments and Securities Tribunal (IST) under case number IST/OA/02/2025: SEC & Anor v. CBEX & 25 Others, chaired by Aminu Jinaidu.
SEC told the tribunal that CBEX operated illegally as an unregistered investment platform and enticed Nigerians with promises of a guaranteed 100% return in 30 days—a claim that violates Section 3(b) of the Investments and Securities Act 2025.
How the scheme operated
Regulatory filings show that CBEX launched in Nigeria around July 2024 through a website and app that marketed “AI-driven cryptocurrency trading” capable of delivering extraordinary profits.
However, investigators say the platform was structured like a typical Ponzi scheme, paying early investors with deposits from newer victims before collapsing and locking out thousands who had staked their savings.
Victim reports and preliminary findings point to losses estimated at ₦1.3 trillion (approximately US$800 million). Many of the affected individuals were small-scale investors and households who pooled savings in hopes of quick financial relief.
Restraining orders granted by the tribunal
The tribunal granted SEC’s request for sweeping interim measures, including:
Immediate freezing of all bank accounts and financial records linked to CBEX and 25 associated defendants.
Confiscation of houses and other assets suspected to have been acquired with proceeds of the alleged fraud.
Permission to serve hearing notices via national newspapers after none of the defendants appeared in court or provided legal representation.
The matter has been adjourned to January 27, 2026, when further decisions on asset forfeiture and restitution processes may be taken.
A wake-up call for Nigeria’s digital-asset space
Beyond the courtroom, the case has reignited debate about the risks posed by unregulated crypto-investment schemes. CBEX’s collapse again highlights how economic pressure and promises of unusually high returns can lure unsuspecting individuals into fraudulent ventures.
Regulators say the enforcement action sends a clear message: any platform offering investment or digital-asset services in Nigeria must be registered, operate transparently, and comply with the Investments and Securities Act 2025.
Possible next steps
According to SEC’s filings and tribunal directions, the coming months may involve:
Formal forfeiture hearings, which could pave the way for asset liquidation and potential restitution.
Deeper collaboration between SEC, EFCC, the police, and foreign regulators, especially since CBEX’s operations and ownership structures appear to span multiple jurisdictions.
Expanded investor-protection measures, including public awareness campaigns, stricter oversight of crypto platforms, and clearer rules for digital-asset operators.
For thousands of affected Nigerians, the asset freeze offers a faint but important sign of hope—that authorities are acknowledging the scale of the losses and may eventually work toward recovering some portion of the stolen funds.
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