Despite being at the centre of a staggering N1.2 trillion digital trading scandal that allegedly defrauded over 600,000 Nigerians, the controversial platform Crypto Bridge Exchange (CBEX) has resumed operations, quietly reactivating trading and withdrawals in a bid to restore public confidence.
Multiple traders confirmed to The PUNCH on Wednesday that CBEX, currently under investigation by Nigerian authorities, is now allowing new user registrations, trading activities, and limited withdrawals.
This comes as an external audit and insurance verification—both said to be based in the United Kingdom—are underway to determine the true scope of losses following the platform’s collapse in April.
According to sources familiar with the development, withdrawals for legacy users—those with existing accounts before the crash—are scheduled to begin on June 25, 2025, once the audit concludes.
The company claims that insurance backing and asset verification processes are being overseen by a UK-based firm, although specifics remain vague.
CBEX’s comeback follows regulatory backlash, with the Securities and Exchange Commission (SEC) declaring its operations illegal, and the Economic and Financial Crimes Commission (EFCC) launching a formal investigation.
Despite this, activity on the platform appears to be picking up again, particularly among new investors who are reportedly able to fund accounts and withdraw profits without restriction.
CBEX had promised investors returns of up to 100% within 30 days, allegedly through AI-driven trading. It received registration with Nigeria’s Corporate Affairs Commission (CAC) in September 2024 and a compliance certificate from the EFCC’s Special Control Unit Against Money Laundering (SCUML) in January 2025, but is not registered with the SEC.
The platform imploded on April 14, wiping out billions in investor funds. The fallout led to the EFCC declaring eight individuals wanted in connection with the alleged fraud, including Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, and others. One of the key figures, Adefowora Abiodun, surrendered to authorities on Monday.
Despite the regulatory scrutiny, CBEX insists the incident was not fraudulent.
A trader said that the AI trading system suffered a massive loss in April, resulting in the disappearance of user funds. However, CBEX claims affected users can “recover” their accounts by reinvesting: users with balances below $1,000 must add $100, while those above must inject $200.
These investors will allegedly regain access to their old balances in phases—50% withdrawal by June 25, and the rest by August 25, provided they complete verification tied to an insurance claim.
CBEX representatives reject allegations of running a Ponzi scheme, claiming that the widely publicized N1.2tn loss was exaggerated.
According to internal sources, the actual figure under review is about N126bn, and the ongoing audit is intended to clear the platform’s name adding, “New users can register, invest, and withdraw freely,” one source explained. “Only older accounts are under audit. There’s also a referral bonus you can withdraw instantly.”
Another insider said CBEX had transitioned from automated AI trading to a manual signal-based system adding, “Users now receive trading codes three times daily. You input them manually—no automation, no forced trades.”
In internal communications shared via a new Telegram group, an admin identified only as Laura suggested that the platform was “attacked” on April 14, possibly as part of a broader, organized cyber operation. She added that users who had not activated a particular feature called “HOSTING” were spared.
Laura also insisted that CBEX’s insurance partner is processing claims and that some investors have already begun receiving compensation.
She said UK authorities are cooperating with the Nigerian government and that the EFCC had verified compensation payouts linked to CBEX’s parent company, ST Fund.
Meanwhile, in a bulletin issued Wednesday, the EFCC declared foreign national Elie Bitar wanted in connection with the ongoing CBEX investigation.
The agency asked the public to report any information about his whereabouts. His last known address is in Lekki Phase 1, Lagos.
As CBEX attempts a comeback, Nigeria’s Financial Intelligence Unit (NFIU) has issued a stern advisory, warning the public to steer clear of unregulated digital trading platforms. The NFIU flagged several suspect operations—including eWealth Connect, WWCoin (TOFRO), Delux, and ADK—for employing deceptive tactics and unrealistic profit claims.
The advisory described ADK, for instance, as a “high-risk betting and investment platform” operating on a multi-level agent system with hallmarks of a Ponzi scheme. WWCoin was accused of offering 6% daily returns and heavy withdrawal penalties—classic red flags for financial scams.
The SEC Director-General, Dr. Emomotimi Agama, also cautioned Nigerians not to equate CAC or SCUML registration with legitimacy, warning that many fraudulent platforms use these certificates to lure unsuspecting investors. He emphasized that only SEC-registered investment schemes are legally recognized.
The DG said, “Any scheme promising guaranteed high returns with zero risk is likely fraudulent,” Agama said during a public sensitization campaign in Abuja. “The Investments and Securities Act now mandates up to 10 years imprisonment and N20 million in fines for Ponzi operators.”
Agama urged Nigerians to verify investment platforms with the SEC, consult financial experts, and report suspicious schemes immediately.
