The Securities and Exchange Commission has petitioned the Investments and Securities Tribunal to freeze the bank accounts of Crypto Bridge Exchange (CBEX) and 25 other defendants accused of running an illegal digital asset investment scheme that reportedly defrauded Nigerians of approximately N1.3 trillion.
The request was made during the first sitting of the 6th Tribunal in the case marked IST/OA/02/2025 between the SEC and CBEX with 25 others, presided over by the tribunal chairman, Hon. Aminu Jinaidu.
The SEC urged the tribunal to compel commercial banks and other financial institutions across 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 the platform. According to the commission, CBEX operated illegally by posing as a digital assets platform and capital market operator despite failing to register with the regulator.
In its submission, the SEC stated that the platform lured investors with unrealistic offers and promised returns that violated existing laws. “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,” the commission told the tribunal.
The regulator further disclosed that international authorities had previously raised concerns about the platform. It revealed 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 adopted a name closely resembling that of a legitimate property rights trading organisation in China, despite having no affiliation with it.
The tribunal noted that CBEX and the other defendants failed to appear in court and were not represented by any legal counsel. As a result, Hon. Jinaidu ordered that hearing notices be served on the defendants through national newspapers.
CBEX reportedly entered the Nigerian market around July 2024, operating through a website and mobile application, while claiming to use advanced Artificial Intelligence to generate unusually high profits from cryptocurrency trading.
Investors were promised returns of up to 100 percent within a 40 to 45 day lock in period. The scheme later collapsed, triggering widespread losses, as investigations and testimonies from affected individuals revealed that the platform functioned as a Ponzi scheme that siphoned more than N1.3 trillion, estimated at about 800 million dollars, from the public before disappearing. The matter has now been adjourned to January 27, 2026.
