SEC Seeks Freeze on CBEX Accounts Over N1.3tr Fraud
By Patience Ikpeme
The Investments and Securities Tribunal (IST) has begun proceedings in a major case involving the Securities and Exchange Commission (SEC) and the alleged illegal digital asset platform, Crypto Bridge Exchange (CBEX), and 25 other defendants linked to a scheme that defrauded Nigerians of an estimated N1.3 trillion (approximately $800 million).
During the first sitting of the 6th Tribunal, presided over by the Chairman Hon. Aminu Jinaidu, the SEC requested sweeping orders to protect the remaining assets associated with the massive fraud.
The Commission urged the Tribunal to compel commercial banks and other financial institutions in Nigeria to immediately freeze all accounts belonging to the defendants. The regulator also sought orders for the seizure of houses and other physical assets allegedly acquired using funds obtained from unsuspecting investors.
The SEC informed the Tribunal that CBEX operated unlawfully by presenting itself as a legitimate digital assets platform and capital market operator, despite having failed to register with the Commission. The platform, which entered the Nigerian market around July 2024, lured investors with patently unrealistic offers.
The SEC submitted that: “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.”
CBEX had employed a bespoke website and mobile application, claiming to use advanced Artificial Intelligence to generate unusually high profits from cryptocurrency trading, promising returns of up to 100 percent within a 40- to 45-day lock-in period. Investigations and testimony from victims subsequently revealed the platform functioned as a Ponzi scheme that collapsed months later, resulting in widespread losses.
The Commission further disclosed that international regulators had previously warned the public about the platform. It pointed out 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. The advisory noted that the platform used a name resembling that of a genuine property rights trading organisation in China, despite having no affiliation with it.
The Tribunal noted that neither CBEX nor the other 25 defendants appeared in court, nor were they represented by counsel. Consequently, Hon. Jinaidu ordered that hearing notices be served on the defendants through national newspapers to ensure they are formally notified of the proceedings.
In addition to the CBEX matter, the Tribunal Chairman presided over four other cases, including Benue Investments Property Co. Ltd & Anor v Securities and Exchange Commission & 6 Others and Maven Asset Management Ltd v Securities and Exchange Commission.
All matters, including the case against Crypto Bridge Exchange, were adjourned to January 27, 2026.
