CBEX Reboots Amid Fraud Probes and Regulatory Warnings, Lures Fresh Investors with New Promises

Despite a federal investigation and a reported N1.2 trillion loss impacting over 600,000 Nigerians, Crypto Bridge Exchange (CBEX) has resumed operations. The embattled crypto trading platform, flagged by the SEC and under EFCC probe, is now allowing new users to trade and withdraw profits. Existing investors, however, must wait until June 25, 2025, for partial access to their funds pending an ongoing UK-based audit. CBEX claims insurance coverage and is requiring affected users to re-invest to “restore” their wiped accounts—fueling suspicion and debate.

The relaunch comes as CBEX faces severe regulatory backlash. The SEC previously declared the platform illegal, and the EFCC has declared eight persons, including top promoters, wanted for their roles in the alleged fraud. One key figure has surrendered to authorities, and international coordination with UK agencies is underway. Despite these developments, the platform continues to attract new users with the promise of quick returns and referral bonuses. Old accounts, under audit, remain frozen while new accounts can function freely.

CBEX claims the platform’s losses were due to a compromised AI trading algorithm, insisting it was the result of a sophisticated cyberattack rather than fraud. Platform admins maintain that funds remain insured and blame online misinformation for damaging the company’s reputation. They argue that only a fraction of the publicized N1.2 trillion was actually lost, claiming an internal review shows losses closer to N126 billion. Meanwhile, an insurance claims process is ongoing, and some users reportedly began receiving limited compensation.

As CBEX defies regulators and relaunches with bold claims, Nigerian authorities are intensifying their crackdown on unregistered investment platforms. The Nigerian Financial Intelligence Unit (NFIU) issued a sweeping advisory warning against digital investment schemes exhibiting Ponzi characteristics, including CBEX, ADK, WWCoin, and others. The SEC has also warned that Corporate Affairs Commission or EFCC registrations do not confer legitimacy on investment firms. With rising losses and escalating enforcement, officials are urging the public to avoid platforms promising guaranteed high returns without regulatory oversight.

Source: Punch