SEC calls for freezing of CBEX Bank accounts
Orisemeke Benjamin
The Securities and Exchange Commission (SEC) has called for the freezing of bank accounts belonging to CBEX and other defendants with commercial banks or other financial institutions in Nigeria.
In the case of IST/OA/02/2025 Securities and Exchange Commission & Anor v Crypto Bridge Exchange (CBEX) and 25 others which is the first for the 6th Tribunal presided over by Hon. Aminu Jinaidu, Chairman, Investments and Securities Tribunal (IST). SEC also urged the Tribunal to seize the houses and other assets of the defendants acquired from the proceeds of the monies invested by the general public in the CBEX scheme acting as digital assets, platforms/capital market operators.
The Commission in its plea maintained that CBEX is an unregistered platform promising its users 100 percent return on investments within 30days which is unlawful and contrary to section 3 (b) of the Investments and Securities Act 2025
The capital market regulator further revealed that the Securities and Futures Commission of Hong Kong had on April 23rd 2024 issued an advisory note against CBEX stating that it is a suspicious virtual asset company and adopted a name that was similar to that of a property rights trading organization based in China when in fact they are not associated in any way
However, the Tribunal ordered that hearing notice be served on CBEX via National Newspapers because CBEX who are the defendants in the case did not appear nor were they represented in court.
CBEX earlier launched in Nigeria around July 2024, operating through a website and mobile app. It claimed to use advanced Artificial Intelligence (AI) to generate significant profits from crypto trading, promising returns of up to 100% within a 40-to 45-day lock-in period.
CBEX (also known as Crypto Bridge Exchange), was exposed as a Ponzi scheme, leading to an estimated loss of over N1.3 trillion (approximately $800m) for investors.
The Chairman, Investments and Securities Tribunal also presided over the following cases: Benue Investments Property Co. Ltd & Anor v Securities and Exchange Commission & 6 others, Maven Asset Management Ltd v Securities and Exchange Commission, John Makinde Onade & Anor v First Registrars & Investors Services Ltd & Anor and Securities and Exchange Commission and Anor v Tourist Company of Nigeria PLC and 6 Others.
The cases were adjourned to January 27, 2026.
