The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to freeze all bank accounts linked to Crypto Bridge Exchange (CBEX) and 25 other defendants accused of running an illegal digital asset investment scheme that allegedly defrauded Nigerians of N1.3 trillion.

The request was made at the maiden sitting of the sixth Tribunal in case IST/OA/02/2025: SEC & Anor v. Crypto Bridge Exchange (CBEX) & 25 Others, presided over by Tribunal Chairman Hon. Aminu Jinaidu.

SEC urged the Tribunal to direct commercial banks and other financial institutions to immediately block all accounts associated with the defendants. The Commission also sought orders for the seizure of houses and other assets purportedly purchased with funds collected from unsuspecting investors.

According to the regulator, CBEX operated unlawfully by presenting itself as a digital assets investment platform and capital market operator without registering with the SEC as required by law.

The Commission said the company misled the public with unrealistic profit promises.
“CBEX is an unregistered platform promising users 100 percent return on investment within 30 days, which is unlawful and contrary to Section 3(b) of the Investments and Securities Act 2025,” SEC stated.

The agency further disclosed that foreign regulators had earlier raised red flags about the company. The Securities and Futures Commission of Hong Kong issued a public advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset entity. The advisory noted that the platform used a name similar to a legitimate Chinese property rights trading body, despite having no affiliation.

During proceedings, the Tribunal observed that CBEX and the 25 other defendants failed to appear and were not represented. Consequently, Hon. Jinaidu ordered that hearing notices be served through national newspapers.

CBEX entered the Nigerian market in July 2024, operating through a website and mobile app. The platform claimed to deploy advanced artificial intelligence to generate extraordinary profits from cryptocurrency trading, offering investors returns of up to 100 percent within 40–45 days.

The scheme collapsed months later, leaving thousands of investors with massive losses. Investigations and victim testimonies indicated that CBEX was a Ponzi scheme that siphoned over N1.3 trillion (about $800 million) before vanishing from the market.

The case has been adjourned to January 27, 2026.