BY COBHAM NSA – The Securities and Exchange Commission (SEC) has approached the Investments and Securities Tribunal (IST) to freeze all bank accounts belonging to CBEX and other defendants with commercial banks or other financial institutions in Nigeria.
In the case of IST/OA/02/2025 Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 others, the Commission is also requesting the Tribunal to confiscate the houses and other assets of the defendants acquired from the proceeds of the monies invested by the general public in the CBEX scheme acting as digital assets, platforms/capital market operators.
Available records indicate that the case is the first brought before the 6th Tribunal presided over by Hon. Aminu Jinaidu, as the new Chairman of IST.
Importantly, SEC maintained in its plea 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.
This is as the Commission also disclosed that the Securities and Futures Commission of Hong Kong had on April 23rd 2024 issued an advisory note against CBEX indicating that it is a suspicious virtual asset company and adopted a name that was similar to that of a property rights trading organization based in China when in fact they are not associated in any way.
Meanwhile, in order to further proceed with the case, the IST has ordered that hearing notice be served on CBEX through National Newspapers because as the defendants in the case, they have not put up any appearance nor were represented in court.
Launched in Nigeria around July 2024, CBEX has been operating through a website and mobile app, claiming to use advanced Artificial Intelligence (AI) to generate significant profits from crypto trading.
Additionally, the platform promises returns of up to 100 percent on investment within a 40- to 45-day lock-in period.
CBEX, which is the acronym for Crypto Bridge Exchange, was exposed as a Ponzi scheme, leading to an estimated loss of over N1.3 trillion (approximately $800 million) for investors.
Recalled that SEC had in April 2025 issued a statement denying CBEX’s registration as a government-recognised entity, and further pledged that “Pursuant to the provisions of Section 196 of the Investments and Securities Act 2025, the Commission would collaborate with relevant law enforcement agencies to take appropriate enforcement action against the CBEX, its affiliates and promoters.”
In a related development, other cases presided over by the IST Chairman include: Benue Investments Property co. Ltd & Anor v Securities and Exchange Commission & 6 others; and Maven Asset Management Ltd v Securities and Exchange Commission.
Also listed for adjudication are John Makinde Onade & Anor v First Registrars & Investors Services Ltd & Anor; and Securities and Exchange Commission and Anor v Tourist Company of Nigeria PLC and 6 Others.
All the cases were adjourned to January 27, 2026 for further mention and hearing by the Tribunal.
