Crypto Bridge Exchange
Crypto Bridge Exchange (CBEX), a digital trading platform previously accused of orchestrating a N1.2 trillion fraud affecting over 600,000 Nigerians, has reportedly resumed operations. Despite ongoing investigations by the Economic and Financial Crimes Commission (EFCC) and warnings from the Securities and Exchange Commission (SEC), CBEX has reactivated withdrawal options and is allowing new user registrations.
According to sources, CBEX claims that an insurance verification process and an external audit of the company’s financial records are underway to determine the actual amount lost. The audit, conducted by a UK-based insurance firm, is expected to conclude by June 25, 2025. Existing investors, many of whom have been unable to access their funds since the platform’s collapse in April, may be able to withdraw their funds after the audit’s completion.
The SEC has reiterated its warning to the public against investing in unregistered digital trading platforms, emphasizing that only entities registered with the Commission are legally authorized to offer investment services in Nigeria. The Commission has also cautioned that registration with the Corporate Affairs Commission (CAC) and the EFCC’s Special Control Unit Against Money Laundering (SCUML) does not confer legitimacy on any investment scheme.
In a related development, the EFCC has declared eight individuals wanted for promoting the CBEX scheme, including Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede. Additionally, the Commission has declared a foreign national, Elie Bitar, wanted for his alleged involvement in the cryptocurrency investment fraud linked to CBEX.
The Nigerian Financial Intelligence Unit (NFIU) has also issued advisories warning Nigerians against engaging in unregulated digital asset investment platforms, many of which exhibit traits of Ponzi and pyramid schemes. The NFIU flagged multiple online platforms, including eWealth Connect, WWCoin (also known as TOFRO), Delux, and ADK, as posing significant financial risks due to lack of regulatory oversight, unrealistic profit promises, and deceptive marketing tactics.
The SEC has emphasized that promoters and operators of Ponzi schemes in Nigeria risk a penalty of not less than N20 million or imprisonment to a term of 10 years or both, upon conviction as prescribed by the provisions of the newly signed Investments and Securities Act 2025. The Commission has vowed to intensify efforts to stamp out Ponzi and pyramid schemes while paving the way for legitimate investment opportunities to thrive in 2025.