CBEX Resumes Operations Despite SEC Ban, N1.2tn EFCC Probe

Despite facing a Securities and Exchange Commission (SEC) ban and a N1.2 trillion fraud investigation by the Economic and Financial Crimes Commission (EFCC), the embattled Crypto Bridge Exchange (CBEX) has resumed operations. The digital trading platform, which collapsed in April 2025 after allegedly defrauding over 600,000 Nigerians, is now allowing new user registrations, trades, and limited withdrawals.

Sources close to the platform revealed to The Opitanglobalmedia News that CBEX quietly reactivated its portal, citing efforts to restore investor confidence. Two active traders confirmed that withdrawals have resumed for new accounts, while a structured compensation plan for old accounts has been proposed, pending the conclusion of an insurance-led audit.

According to reports, an external audit initiated by a UK-based insurance firm is underway to verify the true extent of losses. Investors have been told they may begin withdrawing portions of their frozen funds starting from June 25, 2025, based on verification and a phased refund approach. Despite regulatory warnings, the platform’s continued operation raises fresh concerns over enforcement and public compliance.

Regulatory Crackdown and EFCC Investigations Intensify

CBEX came under intense scrutiny after its collapse on April 14, 2025. The EFCC confirmed an active investigation into the platform and declared eight individuals wanted for promoting the scheme, including Johnson Oteno, Israel Mbaluka, and Serah Michiro. On Monday, one of its key promoters, Adefowora Abiodun, voluntarily surrendered to the EFCC.

The SEC had earlier declared CBEX illegal, urging Nigerians to avoid investment platforms offering unrealistic returns. CBEX had promised 100% profit within 30 days using artificial intelligence-based trading. It was officially registered with the Corporate Affairs Commission in September 2024 and received a compliance acknowledgment from the EFCC’s Special Control Unit Against Money Laundering in January 2025.

In a separate update on Wednesday, the EFCC declared a Lebanese national, Elie Bitar, wanted for his alleged role in the CBEX fraud. Bitar, whose last known address is in Lekki Phase 1, Lagos, is accused of masterminding aspects of the digital scam. Authorities are calling on the public to provide information about his whereabouts.

CBEX Promoters Offer Compensation Strategy Amid Skepticism

As part of a broader effort to repair its tarnished image, CBEX promoters have introduced a controversial compensation scheme. According to one trader, investors with old accounts must pay an additional $100 to $200 to “reactivate” their accounts before accessing previously lost funds. The platform claims these funds will be fully restored once a UK government audit is concluded.

Fresh investors, however, face no such restrictions. They can register, fund new accounts, and withdraw profits without delay. The platform reportedly offers bonus incentives for referrals, further driving traffic to the site despite the legal cloud surrounding its operation.

An insider noted that the original losses were allegedly due to a malfunction in the AI trading system, which wiped out account balances during a 100% trading session. Platform representatives now insist the platform is insured, and that users must undergo verification with the ST Fund insurance firm to access their claims.

CBEX Footprint Expands Despite Official Warnings

CBEX continues to attract new investors, fueled by promises of profitability and platform stability. This is in stark contrast to repeated warnings from the SEC, EFCC, and the Nigerian Financial Intelligence Unit (NFIU), which on Wednesday flagged multiple similar platforms—including eWealth Connect and WWCoin—as high-risk Ponzi schemes.

A new Telegram group, created for investor updates, shows platform admins responding to user queries and reaffirming CBEX’s credibility. One admin, identified only as Laura, claimed that an “organized and premeditated” cyberattack was responsible for the AI failure in April and dismissed fraud allegations as unfounded rumors.

Laura added that some users have already begun receiving compensation via the ST Fund-linked insurance claims process. However, critics remain skeptical, especially given the lack of transparency and the platform’s refusal to suspend operations pending audit completion.

Legal and Regulatory Complexities Deepen Across Borders

CBEX’s transnational operations further complicate enforcement. Though the platform is active in Nigeria, it is registered in the United Kingdom, with branches also reportedly located in Kenya, South Africa, and Egypt. This international footprint limits the jurisdiction of Nigerian authorities and poses challenges for legal accountability.

When questioned why the audit was not being conducted by Nigerian regulators, a source explained that the UK’s involvement stems from CBEX’s corporate registration in Britain. The ongoing audit is meant to reconcile discrepancies in the reported losses, which CBEX claims were “grossly exaggerated” at N1.2tn, asserting instead that losses totaled around N126bn.

As of press time, EFCC spokesperson Dele Oyewale had not responded to inquiries regarding the latest developments. Meanwhile, public concern continues to mount over the unchecked rise of unregulated digital investment platforms in Nigeria, and the lack of swift enforcement actions to prevent further exploitation.