Crypto Bridge Exchange (CBEX), a digital trading platform accused of defrauding over 600,000 Nigerians of ₦1.2 trillion, has resumed operations despite being banned by the Securities and Exchange Commission (SEC) and under investigation by the Economic and Financial Crimes Commission (EFCC).
Two CBEX traders confirmed to Sources on Wednesday that the platform is now allowing new users to register, trade, and withdraw profits. This comes as an external audit and insurance verification—currently conducted by a UK-based firm—seeks to determine the true extent of losses after the platform’s collapse in April 2025.
Existing users may regain access to their funds starting June 25, 2025, following the audit’s conclusion. However, current withdrawals are limited to new accounts only.
The SEC had earlier declared CBEX illegal, and the EFCC has launched a probe, declaring eight individuals wanted for promoting the platform. Among them are Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede. On Monday, a prominent trader, Adefowora Abiodun, voluntarily reported to the EFCC.
CBEX, registered with Nigeria’s Corporate Affairs Commission in September 2024 and approved by the EFCC’s Special Control Unit Against Money Laundering in January 2025, offered investors a 100% return in 30 days via AI-powered trading. The scheme reportedly collapsed after its trading AI lost 100% of user funds on April 14.
Despite regulatory warnings, new users are still flocking to the platform. Insiders revealed that existing users can only trade, not withdraw, until the UK audit concludes. To restore their account balances, old investors are required to inject new capital—$100 for accounts under $1,000 and $200 for those above.
From June 25, these users will be allowed to withdraw 50% of their capital, with the rest accessible from August 25. Without completing insurance verification, no withdrawals will be processed.
Promoters deny allegations of fraud, attributing the losses to an external AI system breach, which they claim is under UK government investigation. A Telegram admin named Laura said some users survived the incident by disabling AI “hosting” and that early findings indicate a coordinated cyberattack, not internal fraud.
CBEX claims it is insured and that a compensation process is underway. The EFCC has reportedly confirmed that some users have received reimbursement from the insurer.
Efforts to reach EFCC spokesman Dele Oyewale for comment were unsuccessful. Meanwhile, the agency has declared foreign national Elie Bitar wanted for his alleged involvement in the CBEX-related crypto fraud.
In response to the growing trend of unregulated digital investments, the Nigerian Financial Intelligence Unit (NFIU) has issued an advisory warning the public against several platforms including eWealth Connect, WWCoin (TOFRO), Delux, and ADK. The NFIU highlighted traits typical of Ponzi schemes: guaranteed high returns, high referral bonuses, lack of transparency, and vague business models.
The Securities and Exchange Commission also emphasized that registration with the Corporate Affairs Commission or EFCC’s anti-money laundering unit does not validate any investment scheme. SEC Director-General, Dr. Emomotimi Agama, warned Nigerians to verify platforms directly with the SEC before investing and noted that the newly signed Investments and Securities Act provides up to ₦20 million in fines and 10 years imprisonment for Ponzi scheme operators.
