Despite being declared illegal by the Securities and Exchange Commission (SEC) and under active investigation by the Economic and Financial Crimes Commission (EFCC), embattled digital trading platform Crypto Bridge Exchange (CBEX) has quietly resumed operations—sparking fresh concerns over investor safety and regulatory compliance.
CBEX, which allegedly defrauded over 600,000 Nigerians of N1.2 trillion through its AI-powered trading scheme, is currently at the center of one of Nigeria’s largest digital fraud cases. The platform collapsed on April 14, 2025, following what its operators claimed was a catastrophic loss caused by failed artificial intelligence trading.
Two traders on the CBEX platform confirmed to News Review on Wednesday that the platform has restarted trading, allowing new user registrations, profit withdrawals, and even incentivizing referral bonuses—despite ongoing investigations and regulatory warnings.
According to sources, CBEX is undergoing an insurance verification process and an external audit by a UK-based firm to determine the actual losses incurred. Existing investors, many of whom have been locked out of their accounts for weeks, are expected to begin partial withdrawals from June 25, 2025, once the audit concludes.
The SEC, however, has issued a strong warning to the public, reiterating that CBEX is operating illegally and poses serious financial risks to investors. SEC Director-General, Dr. Emomotimi Agama, recently emphasized that registration with the Corporate Affairs Commission (CAC) and the EFCC’s Special Control Unit Against Money Laundering (SCUML) does not legitimize an investment platform in the eyes of the Commission.
“CAC registration and EFCC certificate is not enough to show that a company is registered with SEC. These are red flags Nigerians must look out for,” Agama warned, adding that unrealistic profit promises and lack of SEC licensing are strong indicators of a Ponzi scheme.
CBEX, which offered investors 100% returns in 30 days through alleged AI trading, began operations in late 2024 after receiving CAC and SCUML documentation. However, the SEC clarified that such documents do not equate to approval for investment operations.
Despite regulatory action, CBEX continues to lure new investors. Sources say new accounts can trade and withdraw profits without restriction, while old accounts remain frozen pending audit verification. Some existing investors are being asked to deposit additional funds (ranging from $100 to $200) to reactivate wiped balances—a move experts have described as a classic Ponzi tactic.
In addition to previous arrests and wanted declarations, the EFCC on Wednesday also declared foreign national Elie Bitar wanted in connection to the CBEX fraud. His last known address is in Lekki Phase 1, Lagos.
Meanwhile, the Nigerian Financial Intelligence Unit (NFIU) has released a sweeping advisory warning Nigerians to avoid unregulated digital investment platforms, citing CBEX and others such as WWCoin (TOFRO), eWealth Connect, ADK, and Delux as high-risk ventures exhibiting Ponzi-like characteristics.
The advisory highlighted red flags such as guaranteed high returns, vague business models, lack of regulatory registration, and overreliance on referral bonuses—traits all strongly evident in CBEX’s operations.
Despite these warnings, messages in CBEX Telegram channels continue to encourage investments and provide trading “signals.” Platform representatives maintain that the loss was due to a technical AI failure, not fraud, and claim an ongoing insurance process will restore user funds.
A CBEX admin identified as Laura claimed that an AI firewall breach on April 14 led to the losses and insisted the UK audit and insurance verification will validate CBEX’s position. “The attack was premeditated and not from an individual. We are waiting for the UK government’s official investigation results before anything is made public,” she stated.
Nevertheless, the SEC has urged Nigerians to verify any investment platform through official channels before committing funds and warned that the newly signed Investments and Securities Act provides for a N20 million fine and up to 10 years in prison for operating or promoting Ponzi schemes.
As the investigation continues, regulators stress that investor vigilance is the best defense against digital fraud. The SEC and EFCC are expected to issue further updates as findings from ongoing probes into CBEX’s operations unfold.
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 and under active investigation by the Economic and Financial Crimes Commission (EFCC), embattled digital trading platform Crypto Bridge Exchange (CBEX) has quietly resumed operations—sparking fresh concerns over investor safety and regulatory compliance.){kind=link}