CBEX Quietly Resumes Operations Amid N1.2tn Fraud Probe, SEC Ban

Despite a reported N1.2tn digital trading fraud that impacted over 600,000 Nigerians, Crypto Bridge Exchange (CBEX) has quietly resumed operations. The platform, which was accused of running a fraudulent scheme, has reintroduced new withdrawal options in a bid to restore investor confidence.

On Wednesday, two traders confirmed that the digital trading platform has restarted operations, allowing new users to register, trade, and withdraw profits, even while ongoing investigations by regulatory bodies continue. Sources revealed that an insurance verification process and an external audit are underway to determine the full extent of the financial losses following the collapse of the platform in April.

Existing investors, many of whom have been unable to access their funds for weeks, will reportedly be able to withdraw their money starting June 25, 2025, once the audit by a UK-based insurance firm is completed.

This development follows closely on the heels of a ban imposed by the Securities and Exchange Commission (SEC), which declared the platform illegal. The Economic and Financial Crimes Commission (EFCC) also confirmed that an investigation into CBEX is underway. The platform, which launched in 2024, promised investors 100 percent returns within 30 days through purported AI-driven trading. At least 600,000 Nigerians are believed to have lost approximately N1.2tn when the platform collapsed on April 14, 2025.

The EFCC has since declared eight individuals wanted for promoting the fraudulent scheme, including Johnson Oteno, Israel Mbaluka, and Serah Michiro. Adefowora Abiodun, a key figure in the platform’s operations, recently surrendered to the EFCC for questioning.

Despite these investigations, the platform’s promoters have continued to attract new users, promising them quick returns. New users are now able to register accounts, deposit funds, and withdraw profits without restrictions, as only the older accounts remain under review due to the ongoing audit.

One trader explained that the platform’s administrators are claiming that the funds lost in the April collapse can be restored through a process involving the injection of additional funds into existing accounts. Previous investors who had $1,000 invested would need to inject $100 to restore their balances, while those who had more than $1,000 would need to add $200. However, these funds are currently not available for withdrawal, with the full financial review not expected to conclude until late June.

The platform’s promoters have denied allegations of fraud, attributing the losses to a failed AI-driven trading operation. They assert that the ongoing audit by the UK government will clarify the situation and confirm that the company’s funds remain intact.

A recent Telegram message from an anonymous platform administrator claimed that the cause of the April collapse was a tampering of the AI trading strategy, and assured users that the platform was working with the UK government and the EFCC to resolve the issue.

Meanwhile, the EFCC has expanded its investigation into the platform, issuing a wanted notice for Elie Bitar, a foreign national allegedly involved in the fraudulent activity. The EFCC also confirmed that they had received evidence from the ST Fund company, an insurance firm linked to the platform, which is reportedly compensating affected users.

In response to the ongoing investigation, the Nigerian Financial Intelligence Unit (NFIU) has issued a warning to Nigerians about unregulated digital investment platforms that exhibit Ponzi-like traits, such as unrealistic profit promises and aggressive recruitment schemes. The NFIU flagged multiple platforms, including ADK, WWCoin, and eWealth Connect, as high-risk ventures with potential fraudulent operations.

The NFIU’s advisory cautioned Nigerians, especially students, freelancers, and content creators, to avoid platforms that make exaggerated profit claims or rely heavily on referrals. The unit emphasized the importance of conducting thorough due diligence and consulting licensed financial advisors before engaging in such investments.

As the investigation into CBEX continues, the Director-General of the SEC, Dr. Emomotimi Agama, has reiterated that registration with the Corporate Affairs Commission and the EFCC’s Special Control Unit Against Money Laundering does not guarantee the legitimacy of any investment scheme. He warned the public to remain cautious and to verify the registration status of any platform before investing.

The SEC is also intensifying efforts to educate Nigerians on the risks of Ponzi schemes, citing the newly enacted Investments and Securities Act, which imposes severe penalties on those found guilty of running fraudulent investment schemes.