The Securities and Exchange Commission (SEC) has petitioned the Investments and Securities Tribunal (IST) to freeze the bank accounts of Crypto Bridge Exchange (CBEX) and 25 other defendants over an alleged N1.3 trillion digital investment scam.
The application was made during the first sitting of the 6th Tribunal in the case IST/OA/02/2025: Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 others, presided over by Tribunal Chairman, Hon. Aminu Jinaidu.
SEC asked the Tribunal to compel Nigerian commercial banks and financial institutions to immediately block all accounts linked to the defendants. The Commission also requested the seizure of properties and other assets allegedly purchased with funds obtained from unsuspecting investors.
According to SEC, CBEX operated illegally as a digital asset platform and capital market operator without registering with the Commission. The platform allegedly lured investors with promises of unrealistic returns. “CBEX is an unregistered platform promising users 100 percent returns within 30 days, which contravenes Section 3(b) of the Investments and Securities Act 2025,” the Commission stated.
SEC added that international regulators had previously raised alarms about CBEX. On April 23, 2024, the Securities and Futures Commission of Hong Kong issued an advisory warning that the platform was a suspicious virtual asset entity. The advisory noted that CBEX used a name similar to a legitimate property rights trading organisation in China, despite having no affiliation.
The Tribunal noted that CBEX and the other defendants were absent and unrepresented in court. Consequently, Hon. Jinaidu ordered that hearing notices be served via national newspapers.
CBEX reportedly entered the Nigerian market in July 2024, offering its services through a website and mobile app. The company claimed to use advanced artificial intelligence to deliver high returns from cryptocurrency trading, promising investors up to 100 percent profits within a 40- to 45-day lock-in period.
The scheme collapsed within months, causing massive losses. Investigations and investor testimonies revealed that CBEX operated as a Ponzi scheme, defrauding the public of over N1.3 trillion (around $800 million) before vanishing.
The case has been adjourned to January 27, 2026.
