SEC asks Investments and Securities Tribunal to freeze accounts of CBEX and 25 others over N1.3 trillion digital asset fraud

The Securities and Exchange Commission (SEC) has requested the Investments and Securities Tribunal (IST) to freeze bank accounts linked to Crypto Bridge Exchange (CBEX) and 25 other defendants allegedly involved in an unlawful digital asset investment scheme that defrauded Nigerians of about N1.3 trillion.

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The plea was made during the first sitting of the sixth Tribunal in the case IST/OA/02/2025: Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 Others, presided over by Tribunal Chairman Hon. Aminu Jinaidu.

SEC urged the Tribunal to compel Nigerian commercial banks and financial institutions to immediately freeze all accounts connected to the defendants.

The regulator also sought orders for the seizure of houses and other assets allegedly bought with funds from unsuspecting investors.

According to SEC, CBEX operated illegally by posing as a registered digital asset platform while failing to comply with the Commission’s regulations.

The platform lured investors with promises of 100 percent returns within 30 days, which SEC said violated Section 3(b) of the Investments and Securities Act 2025.

The Commission further revealed that international regulators had previously flagged CBEX. The Securities and Futures Commission of Hong Kong issued an advisory on April 23, 2024, warning that CBEX was a suspicious virtual asset entity.

The platform reportedly used a name similar to a legitimate property rights trading organisation in China, without any actual affiliation.

CBEX entered the Nigerian market in July 2024, operating through a website and mobile app. Investors were promised extraordinary returns using advanced Artificial Intelligence trading systems, with a 40- to 45-day lock-in period.

The scheme eventually collapsed, revealing a Ponzi structure that defrauded over N1.3 trillion ($800 million) from the public.

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During the hearing, the defendants failed to appear or be represented in court. Hon. Jinaidu ordered that hearing notices be served through national newspapers. The case has been adjourned to January 27, 2026.