The plea was made during the first sitting of the sixth Tribunal in 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 commercial banks and other financial institutions to immediately freeze all accounts linked to the defendants. The Commission also sought the seizure of houses and other assets allegedly purchased with funds sourced from unsuspecting investors.
According to SEC, CBEX operated illegally as a digital asset platform and capital market operator without registering with the Commission. The regulator added that CBEX lured investors with promises of 100 percent returns within 30 days, in violation of Section 3(b) of the Investments and Securities Act, 2025.
The Commission further revealed that international regulators had previously flagged the platform. 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 advisory noted that CBEX used a name resembling a legitimate property rights trading organization in China, without any official affiliation.
The Tribunal noted that CBEX and the other defendants failed to appear or be represented in court. Hon. Jinaidu subsequently ordered that hearing notices be served on the defendants through national newspapers.
CBEX entered the Nigerian market in July 2024, operating via website and mobile application. The platform claimed to use advanced AI to generate high profits from cryptocurrency trading, promising returns of up to 100 percent within a 40- to 45-day lock-in period.
The scheme collapsed months later, causing massive losses. Investigations and testimonies from affected investors revealed that CBEX operated as a Ponzi scheme, siphoning over ₦1.3 trillion (approximately $800 million) from the public before disappearing.
The case was adjourned to January 27, 2026.
