In a dramatic turn that has sent shockwaves across Nigeria’s investment and crypto-finance ecosystem, the Securities and Exchange Commission (SEC) has moved to freeze the bank accounts and seize assets tied to Crypto Bridge Exchange (CBEX), the digital-asset platform blamed for defrauding Nigerians of an estimated ₦1.3 trillion.
What Happened
The demand was filed during the first sitting of the 6th Investments and Securities Tribunal (IST) under case IST/OA/02/2025: SEC & Anor v. CBEX & 25 Others, presided over by Aminu Jinaidu, the chairman.
SEC argued CBEX was operating illegally, as an unregistered platform, yet guaranteeing users 100 % returns within 30 days, a promise that breaches Section 3(b) of the Investments and Securities Act 2025.
According to SEC, CBEX initially entered the Nigerian market around July 2024 via a website and mobile app, claiming to leverage advanced “AI-powered crypto trading” to deliver spectacular profits, before collapsing under its own weight and leaving thousands of investors stranded.
The Scale of the Fallout
Investigations and testimonials from affected users suggest that CBEX may have siphoned off roughly ₦1.3 trillion (≈ US$800 million) from unsuspecting investors before collapsing.
Many of these investors were individuals who pooled life savings, believing in promises of quick and high returns.
The collapse left them locked out of their funds, with little to show but dashed hopes and mounting losses.
What SEC Is Asking For
Freezing of all bank accounts and financial institution records linked to CBEX and the 25 other defendants.
Seizure of houses and other assets allegedly acquired with funds from the fraudulent scheme, as part of efforts to recover and restitute defrauded investors’ monies.
The tribunal has ordered that hearing notices be served via national newspapers, after the defendants failed to appear or be represented in court.
The next hearing date has been scheduled for January 27, 2026.
Why This Matters
For Nigeria, and many investors caught in CBEX’s web, this isn’t just another fraud case. It’s a reckoning.
The collapse and financial carnage show how unregulated digital-asset platforms can lure large numbers of people with unrealistic promises of high returns. The tragedy is multiplied by economic hardship, which pushes people to chase quick gains.
The SEC’s decisive action sets a precedent: digital assets and crypto-investment platforms are expected to comply with the law, and those that don’t risk account freezes, asset seizures, and prosecution under the Investments and Securities Act 2025.
For victims, freezing and seizing assets offers a glimmer of hope. It signals that regulators and justice institutions recognize the scale of the damage, and may seek to recover and return funds, or at least provide some form of restitution if possible.
What to Watch Next
The January 2026 tribunal hearing, when the court may decide whether to formally confiscate assets and begin restitution or liquidation.
Possible cooperation between SEC, law enforcement agencies (including Economic and Financial Crimes Commission, EFCC), and, where necessary, international regulators, especially given the cross-border aspects of crypto flows and CBEX’s suspicious registration and links abroad.
Public education and regulatory reforms designed to prevent repeat occurrences, including stricter oversight of digital-asset platforms, clearer investor protections, and awareness campaigns about how to spot Ponzi or scam schemes.
