The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to order the immediate freezing of bank accounts linked to Crypto Bridge Exchange (CBEX) and 25 other defendants accused of running an illegal digital asset investment scheme that allegedly defrauded Nigerians of an estimated N1.3 trillion.
The request was made during the first sitting of the sixth panel of the Tribunal in the case titled “Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 Others,” with suit number IST/OA/02/2025. The hearing was presided over by the Chairman of the Tribunal, Honourable Aminu Jinaidu.
During the proceedings, the SEC urged the Tribunal to direct commercial banks and other financial institutions operating in Nigeria to immediately freeze all accounts connected to CBEX and the other defendants. The Commission said this step was necessary to prevent further movement of funds linked to the alleged investment scam and to protect the interests of affected investors.
In addition to freezing the accounts, the SEC also requested orders for the seizure of houses, landed properties, and other assets believed to have been purchased with funds obtained from unsuspecting members of the public who invested through the CBEX platform. The regulator told the Tribunal that these assets were allegedly acquired through proceeds of what it described as an unlawful online investment operation.
The SEC informed the court that CBEX operated illegally in Nigeria by presenting itself as a digital assets trading platform and capital market operator without registering with the Commission, as required by law. According to the SEC, the company violated provisions of the Investments and Securities Act 2025 by carrying out capital market activities without approval or supervision.
The Commission said CBEX attracted investors by offering unrealistic and unlawful promises. In its submission to the Tribunal, the SEC stated that the platform promised its users 100 per cent return on their investments within 30 days, a practice the regulator described as illegal and contrary to Section 3(b) of the Investments and Securities Act 2025. The regulator stressed that such guaranteed high returns are common signs of Ponzi schemes and online investment scams.
The SEC also revealed that international regulators had previously raised concerns about CBEX. It told the Tribunal that the Securities and Futures Commission of Hong Kong issued a public advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset entity. According to the advisory, the platform was using a name similar to that of a legitimate property rights trading organisation in China, even though it had no real connection to that organisation.
At the court session, none of the defendants, including CBEX, were present, and they were not represented by any legal counsel. As a result, Honourable Aminu Jinaidu ordered that hearing notices be served on the defendants through national newspapers to ensure they are formally informed of the case and the next court date.
Findings by the SEC showed that CBEX entered the Nigerian market around July 2024 and operated through a website and a mobile application. The platform claimed it used advanced artificial intelligence technology to generate unusually high profits from cryptocurrency trading. It marketed itself heavily on social media and private messaging platforms, promising investors returns of up to 100 per cent within a 40 to 45-day lock-in period.
However, the scheme later collapsed after several months of operation, leading to widespread complaints from investors across different parts of Nigeria. Investigations and testimonies from affected individuals showed that many Nigerians lost their life savings, business capital, and borrowed funds after investing through the platform. Authorities believe the operation worked like a typical Ponzi scheme, where money from new investors was used to pay earlier investors, until it eventually crashed.
Preliminary investigations suggest that more than N1.3 trillion, estimated at about 800 million US dollars, was siphoned from the public before the platform went offline and disappeared. The case adds to the growing list of cryptocurrency fraud, digital asset scams, and unregistered online trading platforms affecting Nigerian investors.
The Tribunal has adjourned the matter to January 27, 2026, for further hearing.
