CBEX Resumes Operations Despite N1.2tn Fraud Probe and SEC Ban
Despite an active probe into an alleged N1.2 trillion digital trading fraud and a ban by Nigeria’s Securities and Exchange Commission, Crypto Bridge Exchange (CBEX) has resumed operations, allowing new users to register, trade, and withdraw funds.
Two users of the CBEX platform told The PUNCH on Wednesday that the embattled investment company had quietly restarted activities, despite ongoing investigations by the SEC and the Economic and Financial Crimes Commission (EFCC). The platform, accused of defrauding over 600,000 Nigerians following its sudden collapse in April, is now reportedly offering new withdrawal options to rebuild investor trust.
According to sources familiar with the situation, CBEX is undergoing an external financial audit by a UK-based insurance firm to verify the actual sum lost. The findings, expected to be completed by 25 June 2025, could pave the way for previously affected investors to begin reclaiming funds, which have been inaccessible for weeks.
This development follows a formal declaration by the SEC labelling CBEX as an illegal investment operation. The EFCC, meanwhile, has confirmed it is investigating the company’s activities. CBEX had initially attracted investors with promises of 100 per cent returns in 30 days, allegedly generated by artificial intelligence-driven trading.
The firm began operations in 2024 after registering with the Corporate Affairs Commission in September and receiving a certificate from the EFCC’s Special Control Unit Against Money Laundering in January 2025. On 14 April 2025, the scheme reportedly collapsed, wiping out N1.2tn in investor funds.
In response, the EFCC declared eight individuals wanted in connection with the scheme, including Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede. More recently, Adefowora Abiodun, a prominent figure within the platform, voluntarily turned himself in for questioning.
Nevertheless, CBEX has continued to operate in defiance of regulatory warnings. The platform, which had halted withdrawals for existing users, has now reactivated its systems—though old accounts remain under audit. According to a trader, users with older accounts must verify their status through an insurance process and inject fresh capital to restore lost balances. Those who do so are promised phased withdrawals from June and August.
New users, however, face no such restrictions. They can register, deposit funds, trade, and withdraw profits without limitation. CBEX promoters have maintained that they are not running a scam and that the massive losses were due to an AI trading mishap on 14 April, which caused all funds to be lost. They claim that the platform and app were insured and that ongoing verification would determine compensation.
The promoters argue that only around N126bn was lost—far less than the N1.2tn figure reported—hence the audit’s necessity. They assert the platform is now manually operated, with users executing trades using shared codes, unlike the earlier AI-automated system.
One source explained that CBEX is registered in the United Kingdom and merely extended its services to Nigeria. The company also reportedly has operations in Kenya, South Africa, and Egypt.
According to reports, in a Telegram group linked to the platform, a representative identified as Laura told users the April incident was likely caused by a sophisticated cyberattack, not a simple breach. She insisted that only users who had not enabled a specific feature survived the wipeout, pointing to the severity of the alleged hack. She urged affected users to follow the insurance company’s claims process, confirming that some users have already received partial compensation.
Laura also claimed that the UK and Nigerian governments are collaborating on the matter and that the EFCC had verified the compensation process. However, attempts to get comments from EFCC spokesperson Dele Oyewale were unsuccessful as calls and messages went unanswered.
Meanwhile, the EFCC declared another individual, Elie Bitar, wanted for alleged involvement in CBEX-related fraud. In a bulletin published on social media, the commission appealed to the public to report any information on Bitar’s whereabouts. His last known address was in Lekki Phase 1, Lagos.
In a related development, the Nigerian Financial Intelligence Unit (NFIU) issued a public warning against unregulated digital asset investment platforms. The advisory named several high-risk schemes, including eWealth Connect, WWCoin (TOFRO), Delux, and ADK, all of which were flagged for operating without regulatory oversight and using misleading profit guarantees.
The NFIU described ADK as particularly dangerous, citing a multi-level referral system and high withdrawal fees, with users reportedly misled by inflated success rates. WWCoin was noted for promising up to 6 per cent daily returns and applying excessive fees, both classic traits of Ponzi schemes. eWealth Connect, though innovative in design and built on the Solana blockchain, was flagged for untested regulatory compliance. Delux, marketed toward students and freelancers for monetising online tasks, was also listed as potentially unsafe.
Common red flags identified by the NFIU include unrealistic profit guarantees, unregulated operations, referral-dependent income, fake endorsements, vague business models, and pressure to invest quickly.
The SEC’s Director-General, Dr Emomotimi Agama, further warned Nigerians against assuming legitimacy based on Corporate Affairs Commission or EFCC certifications alone. Speaking at a sensitisation event in Abuja, Agama stressed that only SEC registration confers regulatory approval for investment schemes in Nigeria. He added that many fraudulent platforms prey on unsuspecting citizens with training programmes and exaggerated earnings promises.
The SEC boss noted that a new law—the Investments and Securities Act—now stipulates a fine of up to N20 million and a 10-year prison term for individuals involved in Ponzi schemes. He urged Nigerians to always confirm the regulatory status of any investment offering through official SEC channels before committing their funds.
