The Crypto Bridge Exchange (CBEX), a digital trading platform accused of orchestrating a N1.2 trillion fraud affecting over 600,000 Nigerians, has unexpectedly resumed operations, sparking both hope and skepticism among investors. Despite ongoing investigations by the Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC), CBEX has enabled new user registrations, trading activities, and profit withdrawals. While this move is presented as an attempt to restore confidence, it has also raised concerns about the platform’s legitimacy and the potential for further financial exploitation. Existing investors, who have been locked out of their accounts since the platform’s collapse in April, are promised access to their funds starting June 25, 2025, upon completion of an external audit conducted by a UK-based insurance firm. This audit is purportedly intended to verify the actual amount lost in the scheme and ensure accurate compensation to affected investors.
CBEX, originally registered with the Corporate Affairs Commission and the EFCC’s anti-money laundering unit, offered investors an enticing 100% profit within 30 days through alleged AI-driven trading. The platform’s collapse in April 2025 left an estimated 600,000 Nigerian investors reeling from significant financial losses, leading to the EFCC declaring eight individuals wanted for their involvement in promoting the scheme. While one individual has voluntarily surrendered for questioning, the remaining promoters remain at large. The SEC has declared CBEX an illegal operation, cautioning the public against investing in platforms promising unrealistic returns. However, despite these warnings and ongoing investigations, new users are reportedly flocking to the platform, lured by the promise of quick profits and the apparent resumption of withdrawal options.
The resumption of withdrawals on CBEX is, however, nuanced. While new accounts can reportedly process withdrawals without restrictions, funds in older accounts, allegedly wiped out during the April crash, remain inaccessible. The platform claims an insurance verification process is underway, requiring existing investors to inject additional funds – $100 for those with $1,000 capital and $200 for those with larger investments – to restore their account balances. These restored balances can purportedly be used for trading, but withdrawals from old accounts will only be allowed from June 25, 2025, following the UK-based audit. This staggered withdrawal plan, coupled with the requirement for additional investment, has understandably raised suspicion among affected investors.
CBEX promoters deny allegations of fraud, claiming that the funds are intact and the audit is merely a reconciliation process. They attribute the April losses to an alleged attack on their AI trading system, impacting only those users who had a specific feature, “HOSTING,” enabled. This explanation, however, does not address the SEC’s concerns about the platform’s unrealistic profit promises and its lack of regulatory compliance. Further complicating the matter, the CBEX promoters claim the company is registered in the UK and not Nigeria, although their operations are primarily focused on the Nigerian market. This assertion raises questions about jurisdictional oversight and the potential challenges in holding the company accountable.
Adding another layer of complexity is the introduction of a new referral bonus system. New users can reportedly withdraw referral bonuses immediately, even while older investors await the outcome of the audit and the staggered withdrawal process. This disparity in treatment further fuels skepticism about the platform’s true intentions and raises concerns that the resumed operations may be a tactic to attract new investments to cover previous losses. The company has attempted to address investor concerns through messages in a newly created Telegram group, reiterating the claim of an external attack on their AI system and asserting that the UK government’s investigation will reveal the truth. They also claim that compensation is being processed and that the EFCC’s confidence in the platform’s ability to repay investors is proof of their legitimacy.
Meanwhile, the Nigerian Financial Intelligence Unit (NFIU) has issued a strong warning against unregulated digital asset investment platforms, including CBEX, highlighting red flags such as unrealistic returns, emphasis on referrals, opaque business models, and pressure tactics. The NFIU’s advisory goes beyond CBEX to flag several other platforms exhibiting similar characteristics, emphasizing the broader risk these schemes pose to Nigerian investors. The SEC has reinforced this warning, stating that registration with the Corporate Affairs Commission and the EFCC does not equate to legitimacy in the investment sector. The SEC director-general emphasized the importance of verifying registration with the SEC before investing and highlighted the newly enacted Investments and Securities Act, which imposes hefty penalties, including fines and imprisonment, for those involved in Ponzi schemes. These warnings underscore the regulatory efforts to combat fraudulent investment schemes and protect Nigerian investors from financial exploitation. The CBEX saga highlights the ongoing challenges in regulating the rapidly evolving digital investment landscape and the need for investor vigilance in the face of enticing promises of quick profits.
