The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to order the freezing of all bank accounts belonging to Crypto Bridge Exchange (CBEX) and other defendants held in commercial banks and financial institutions across Nigeria.
The request was made in Suit No. IST/OA/02/2025: Securities and Exchange Commission & Anor v. Crypto Bridge Exchange (CBEX) & 25 Others, the first case before the 6th Tribunal presided over by Hon. Aminu Jinaidu, Chairman of the IST.
SEC also urged the Tribunal to seize houses and other assets allegedly acquired by the defendants using proceeds obtained from the public through the CBEX investment scheme, which it said falsely operated as a digital assets platform and capital-market operator.
The Commission argued that CBEX, which is not registered with SEC, unlawfully promised investors a 100 percent return on investment within 30 days—conduct it said is in violation of Section 3(b) of the Investments and Securities Act, 2025.
SEC further disclosed that the Securities and Futures Commission of Hong Kong had, on April 23, 2024, issued an advisory warning against CBEX, describing it as a suspicious virtual-asset entity. According to the advisory, CBEX adopted a name resembling that of a Chinese property-rights trading organisation to give investors false assurance, despite having no connection with the legitimate entity.
At Tuesday’s sitting, the Tribunal ordered that hearing notices be served on the defendants through national newspapers, as CBEX failed to appear and was not represented in court.
CBEX launched in Nigeria in July 2024, operating through a website and mobile app. It claimed to use advanced artificial intelligence to generate unusually high profits from cryptocurrency trading, promising returns of up to 100 percent within a 40- to 45-day lock-in period. The scheme later collapsed and was exposed as a Ponzi operation that reportedly defrauded investors of more than N1.3 trillion (about $800 million).
Hon. Jinaidu also presided over several other matters on the tribunal’s docket, including 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 & Anor v. Tourist Company of Nigeria PLC & 6 Ors. All the cases were adjourned to January 27, 2026.
