A controversial cryptocurrency trading platform in Nigeria, Crypto Bridge Exchange (CBEX), which is facing allegations of a 1.2 trillion Naira (approximately £600 million) digital trading fraud affecting over 600,000 people, has reportedly resumed operations. The move comes despite ongoing investigations by regulatory agencies and aims to restore investor confidence through new withdrawal options.
Two traders on the CBEX platform have told The PUNCH newspaper that the firm has quietly restarted trading, allowing new users to register, trade, and withdraw profits. This resumption occurs while the platform is under scrutiny from the Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC), both of which have declared CBEX illegal and confirmed ongoing investigations.
Sources within the platform indicate that an insurance verification process and an external audit of the company’s financial records are underway to determine the actual amount lost when the scheme collapsed in April. The audit is reportedly being conducted by a UK-based insurance firm and is expected to conclude around June 25th, 2025, after which existing investors, who have been unable to access their funds for weeks, may be able to make withdrawals.
CBEX, which offered investors a purported 100% profit after 30 days through AI trading, began operations in 2024 after receiving registration approval from the Corporate Affairs Commission and the EFCC’s Special Control Unit Against Money Laundering. However, the platform’s collapse in April led to significant losses for a large number of Nigerian investors.
In response to the alleged fraud, the EFCC had declared eight individuals wanted for promoting the scheme, and a prominent leader on the platform recently surrendered for questioning. Other regulatory bodies, including the SEC, have strongly condemned CBEX’s operations, warning Nigerians against platforms promising unrealistic returns.
Despite these warnings, The PUNCH reports that new users are still being drawn to CBEX by promises of quick profits following the resumption of operations. Sources suggest that while new accounts can currently process withdrawals, funds in older accounts, allegedly wiped out in the collapse, remain inaccessible for the time being.
CBEX promoters are reportedly attempting to distance themselves from allegations of fraud, claiming that funds remain intact and that the ongoing audit is focused on reconciling discrepancies in older accounts. They are also offering incentives, such as referral bonuses that can be withdrawn immediately, to attract new investors.
One source familiar with the situation suggested that the audit is being conducted by a UK firm because CBEX is registered in the United Kingdom, having only extended its operations to Nigeria and other African countries.
Meanwhile, the Nigerian Financial Intelligence Unit (NFIU) has issued a strong advisory cautioning Nigerians against engaging with unregulated digital asset investment platforms, many of which exhibit characteristics of Ponzi and pyramid schemes. The NFIU specifically flagged several platforms, including eWealth Connect, WWCoin, Delux, and ADK, as posing significant financial risks.
The Director-General of the SEC has also warned that registration with the Corporate Affairs Commission and the EFCC’s anti-money laundering unit does not legitimise investment schemes and urged Nigerians to verify the registration status of any investment platform with the SEC before investing. He highlighted that the recently enacted Investments and Securities Act includes stricter penalties for those involved in Ponzi schemes.
The EFCC has further declared a foreign national, Elie Bitar, wanted in connection with the alleged fraud linked to Crypto Bridge Exchange. Authorities are urging anyone with information on his whereabouts to come forward. The EFCC has so far declined to comment on the latest developments regarding CBEX’s resumed operations.
Add Comment