By Bassey Udo
The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to order the immediate confiscation of all houses and other assets belonging to the promoters of Crypto Bridge Exchange, popularly called CBEX.
The apex capital market regulator also asked the tribunal to order the freezing of all accounts with commercial banks or other financial institutions in Nigeria belonging to the promoters of the ponzi scheme and other defendants.
The scheme crashed in April this year, throwing most investors into financial distress as the promoters were said to have left behind losses estimated at over N1.3 trillion (approximately $800 million) in unsettled claims to investors.
In the case, which is the first to be handled by the 6th Tribunal presided by IST Chairman, Aminu Jinaidu, SEC urged the tribunal to confiscate all properties and other assets belonging to the defendants acquired from the proceeds of investments by the general public in the CBEX scheme, which acted as digital assets, platforms/capital market operators.
SEC in its plea contained in the application before the tribunal maintained that CBEX was an unregistered platform that promised its users 100 percent return on investments within 30 days, which is unlawful and contrary to section 3(b) of the Investments and Securities Act (ISA) 2025.
The Commission further revealed that since April 23, 2024, the Securities and Futures Commission of Hong Kong had issued an advisory note against CBEX, in which they raised suspicion about the virtual asset company.
The Hong Kong Commission said its suspicion stemmed from ponzi scheme promoters adopting a name that was similar to China-based property rights trading organization, China-Beijing Equity Exchange (CBEX), when in fact they were not associated in any way.
After the review of the application by SEC, the tribunal ordered that hearing notices be served on CBEX and other defendants through the pages of national newspapers in view of the fact that the defendants failed to either appear nor were represented in court.
CBEX, which was earlier launched in Nigeria around July 2024, operated through a website and mobile app.
The promoters claimed to use advanced Artificial Intelligence (AI) to generate significant profits from crypto trading, promising returns of up to 100 percent within a 40 to 45-day lock-in period.
The Chairman of the IST adjourned hearing in the case to January 27, 2026.
