In a major crackdown, Nigeria’s Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to freeze all bank accounts and seize the assets of Crypto Bridge Exchange (CBEX) and 25 other defendants.
The move comes in response to an alleged unlawful digital asset investment scheme that defrauded Nigerians of an estimated N1.3 trillion.
The request was made during the first hearing of the case (IST/OA/02/2025), presided over by Tribunal Chairman Hon. Aminu Jinaidu. SEC urged the Tribunal to compel commercial banks and other financial institutions to immediately freeze all accounts linked to the defendants and to seize houses and other assets believed to have been acquired with investors’ funds.
According to the regulator, CBEX operated illegally by posing as an unregistered digital assets platform and capital market operator. The commission told the Tribunal that the platform lured investors with “unrealistic offers,” including a promise of 100 percent return on investments within 30 days—a practice it said contravenes the Investments and Securities Act.
SEC further revealed that international regulators had previously flagged CBEX as suspicious. The Securities and Futures Commission of Hong Kong issued an advisory in April 2024 warning that CBEX was a suspicious virtual asset entity that used a name resembling a legitimate Chinese firm without any affiliation.
CBEX, which entered the Nigerian market around July 2024, claimed to use advanced Artificial Intelligence to generate unusually high profits from cryptocurrency trading. Investors were promised returns of up to 100% within a 40–45 day lock-in period.
The scheme collapsed months later, triggering widespread losses. Investigations indicate CBEX operated as a Ponzi scheme, siphoning over N1.3 trillion (about $800 million) from the public before disappearing.
Neither CBEX nor any of the other defendants appeared or were represented in court. The Tribunal has ordered that hearing notices be served on them through national newspapers. The case has been adjourned to January 27, 2026.
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