LAGOS – Despite an ongoing investigation into a massive N1.2 trillion digital trading fraud that reportedly affected over 600,000 Nigerians, embattled investment platform Crypto Bridge Exchange (CBEX) has resumed operations—reigniting concerns among regulators and financial watchdogs.
Two traders told to The PUNCH on Wednesday that the digital trading firm, which abruptly collapsed on April 14, has quietly reopened, enabling new users to register, trade, and withdraw profits. This comes even as the Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) continue their investigations into what has been described as one of Nigeria’s largest digital fraud scandals.
Sources said an external audit and insurance verification process—led by a UK-based firm—are ongoing to determine the actual losses, with a June 25, 2025 deadline for completion. Until then, older investors remain unable to access their locked funds.
Old Investors Face Restrictions, New Users Enjoy Withdrawals
One trader explained that while CBEX has reactivated withdrawal features for new accounts, old accounts—those affected by the April collapse—remain frozen pending the audit’s outcome. Investors have been told that reactivating old balances will require fresh capital injections: $100 for accounts below $1,000, and $200 for higher balances.
“From June 25th, users can withdraw up to 50% of their locked capital, with the remainder expected by August 25,” a source said. However, this is contingent on undergoing the insurance verification process.
Promoters insist the losses were due to a failed artificial intelligence trade on April 14 and maintain that the company is not a Ponzi scheme. They have blamed an “external attack” for the platform crash and claim that only N126 billion—not N1.2 trillion—was lost.
CBEX Accused of Illegal Operations, 9 Declared Wanted
Earlier in April, the SEC declared CBEX illegal, and the EFCC began probing its operations. The commission has declared nine individuals wanted, including Adefowora Olanipekun, Serah Michiro, and Johnson Oteno. On Monday, Adefowora Abiodun, a key trader and platform leader, turned himself in to the EFCC.
On Wednesday, the EFCC also declared Elie Bitar, a foreign national, wanted for alleged involvement in the CBEX-linked crypto fraud. His last known address is in Lekki Phase 1, Lagos.
Regulators Sound Alarm as New Investments Pour In
Despite ongoing investigations and regulatory warnings, CBEX continues to attract new investors lured by the promise of high returns and referral bonuses. A new Telegram group linked to the platform shows users actively discussing trades and bonuses, with admins claiming that compensation for old losses is underway through an insurance partner.
In messages viewed by The PUNCH, CBEX administrators insisted that AI was attacked and that accounts without “HOSTING” features were unaffected. The firm claims the UK government is investigating the incident and in talks with Nigerian authorities.
NFIU Flags CBEX, Other Platforms in High-Risk Advisory
In a sweeping advisory released Wednesday, the Nigerian Financial Intelligence Unit (NFIU) named CBEX among several unregulated digital asset platforms posing serious risks to Nigerian investors.
Others include eWealth Connect, WWCoin (TOFRO), Delux, and ADK—each flagged for offering unrealistic returns, operating multi-level marketing schemes, or lacking regulatory oversight.
The NFIU warned that many of these platforms exploit unsuspecting users—particularly students, freelancers, and digital creators—under the guise of community-driven innovation or AI-driven profits.
SEC Warns: CAC and EFCC Certificates Not Proof of Legitimacy
At a sensitization campaign in Abuja, SEC Director-General Dr. Emomotimi Agama cautioned Nigerians against mistaking Corporate Affairs Commission (CAC) or EFCC registration for legitimacy.
“SEC registration is the only legal benchmark,” Agama said. “Many scammers are hiding behind CAC certificates and fake training programmes. If it’s too good to be true, it’s likely fraudulent.”
He added that the newly signed Investments and Securities Act prescribes a fine of up to N20 million and a 10-year jail term for anyone promoting Ponzi schemes.
A Digital Wild West
CBEX’s brazen return—amid a cloud of investigations, legal challenges, and regulatory crackdowns—highlights the growing challenges in policing Nigeria’s fast-evolving digital finance space.
As CBEX pushes to regain credibility and draw in new funds, regulators warn that investor optimism could lead to further heartbreak.
Nigerians are urged to verify investment schemes with the SEC before committing funds, and to report suspicious platforms to financial authorities.
