Despite facing a Securities and Exchange Commission (SEC) ban and an Economic and Financial Crimes Commission (EFCC) probe into an alleged N1.2 trillion digital trading fraud affecting over 600,000 Nigerians, the controversial trading platform Crypto Bridge Exchange (CBEX) has resumed operations.
Two CBEX traders confirmed to DIP CONNECT ONLINE NEWS on Wednesday that the platform is now quietly allowing new registrations, trading activities, and profit withdrawals, even as investigations by Nigerian authorities continue.
Sources disclosed that an insurance verification process and an external audit of the firm’s financials are underway to determine the actual losses after the platform’s sudden collapse in April 2025. The audit, conducted by a UK-based insurance firm, is expected to be completed by June 25, 2025. Existing investors, who have been unable to access their funds, are promised withdrawals beginning on that date.
CBEX initially attracted investors with promises of 100% profit within 30 days through supposed AI-powered trading. The platform launched operations in 2024 after being registered with the Corporate Affairs Commission (CAC) on September 25 and receiving clearance from the EFCC’s Special Control Unit Against Money Laundering on January 16, 2025.
After its collapse on April 14, over 600,000 Nigerians were reported to have lost a combined N1.2 trillion. In response, the EFCC declared eight individuals wanted: Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede. On Monday, platform leader Adefowora Abiodun turned himself in to the EFCC.
Despite being declared illegal by the SEC, and amidst EFCC investigations, new users are flocking to the platform enticed by revived withdrawal options and promises of quick profit. A source explained that while new accounts can currently withdraw funds without restrictions, older accounts—allegedly wiped clean—remain under audit.
The source added that to recover wiped funds, old investors must co-invest new amounts. Those with previous balances under $1,000 must add $100, while those with more must inject $200. They claim these steps restore access to the old balance, though withdrawals from such accounts remain suspended until at least June 25.
According to the source, by that date, 50% of remaining capital will be accessible, with the other half available from August 25, pending successful verification. Without completing verification, balances will not reflect.
While old accounts are under review, new investors can open accounts, trade, and withdraw freely. Promoters argue that the losses were due to a total failure of the platform’s AI trading engine, not fraud. They also deny the reported N1.2tn loss, claiming actual losses total around N126bn.
The platform now offers a manual trading mode where users receive trading codes three times daily instead of automated AI trading. Promoters claim this change gives users more control and transparency.
A source clarified that CBEX is registered in the UK, not Nigeria, and has branches in Kenya, South Africa, and Egypt, explaining why a UK firm is handling the audit.
In a new Telegram group for users, an administrator named Laura blamed the April 14 collapse on an organized cyberattack that tampered with the AI’s trading strategy. She claimed only users who had not enabled "HOSTING" mode were unaffected. Laura suggested the attack was linked to the Bybit hacker incident and emphasized that results from the UK investigation would determine what information is publicly disclosed.
She also debunked rumors that CBEX admins transferred over $800 million in assets, explaining that the platform’s system uses multiple deposit addresses rather than a single common account. According to her, the platform is cooperating with the UK and Nigerian governments, and compensation from an insurance-backed ST Fund has already begun for some users.
Efforts to get a comment from EFCC spokesperson Dele Oyewale were unsuccessful, as he did not respond to calls or messages.
Meanwhile, the EFCC has declared Elie Bitar, a foreign national, wanted for alleged involvement in the CBEX fraud. The commission urged anyone with information about Bitar, whose last known address is in Lekki Phase 1, Lagos, to contact its offices.
In related developments, the Nigerian Financial Intelligence Unit (NFIU) issued a strong advisory warning against unregulated digital investment platforms. The advisory named several high-risk platforms: eWealth Connect (EWC), WWCoin (TOFRO), Delux, and ADK.
ADK was flagged as a deceptive investment and betting platform using a multi-level agent system and unrealistic profit claims. EWC, operating on the Solana blockchain, was noted for its untested regulatory compliance despite offering innovative features. Delux, which monetizes social media activities, was advised to be approached with caution, especially by students and freelancers. WWCoin was flagged for Ponzi-like behavior due to its promises of up to 6% daily returns and aggressive deposit incentives.
The NFIU outlined red flags for investors to watch for, including:
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Guaranteed high returns
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Emphasis on referrals over actual product value
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Use of fake tokens or partnerships
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Vague or opaque business models
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Pressure to invest quickly
It urged Nigerians to conduct due diligence, consult licensed financial advisers, and report suspicious platforms.
Speaking at a sensitization tour in Abuja, SEC Director-General Dr. Emomotimi Agama reiterated that registration with CAC or EFCC's anti-money laundering unit does not equate to SEC approval. He warned that many fraudulent platforms exploit these credentials to mislead investors.
Dr. Agama emphasized that the newly signed Investments and Securities Act provides for a N20 million fine and a 10-year jail term for Ponzi scheme operators, empowering the SEC to take stronger enforcement actions.
He urged Nigerians to always verify a platform’s registration status with the SEC and warned that using training programs to lure people into investment schemes is illegal.
ADEOLA KUNLE
