SEC Nigeria Seeks Freeze of CBEX Accounts and Assets as Tribunal Opens Proceedings

The Securities and Exchange Commission (SEC) of Nigeria has asked the Investments and Securities Tribunal (IST) to freeze all bank accounts linked to Crypto Bridge Exchange (CBEX) and 25 other defendants across commercial banks and financial institutions in the country. The Tribunal on Tuesday formally opened proceedings in the case SEC & Anor v. CBEX & 25 Others.

SEC Nigeria is also requesting orders to confiscate houses and other assets allegedly acquired with funds collected from the public through the CBEX scheme.

According to the SEC’s filings, CBEX is an unregistered entity that unlawfully promised investors 100% returns within 30 days, in violation of Section 3(b) of the Investments and Securities Act 2025.

The Commission further noted that the Securities and Futures Commission (SFC) of Hong Kong had issued an advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset company using a name similar to a legitimate Chinese organisation to mislead the public.

Because CBEX and the other defendants have failed to appear before the Tribunal, the IST has ordered that a hearing notice be served through national newspapers to enable the case to proceed.

CBEX, launched in Nigeria around July 2024, operated through a website and mobile app, claiming to use advanced artificial intelligence to generate high‑yield crypto profits. The platform promised returns of up to 100% within a 40–45‑day lock‑in period.

The Ponzi scheme collapsed in April 2025, with losses estimated at over ₦1.3 trillion (about $800 million).

Also in April 2025, SEC Nigeria publicly clarified that CBEX was not registered or recognised by the Commission and pledged to work with law enforcement agencies to take “appropriate enforcement action” against the platform, its affiliates, and its promoters.