CBEX Defies SEC Ban, Resumes Operations Amid N1.2tn Fraud Probe and EFCC Manhunt
1. Background of the Controversy:
• Crypto Bridge Exchange (CBEX), a digital investment platform, is at the center of a massive N1.2 trillion fraud scandal, affecting over 600,000 Nigerians.
• The platform allegedly collapsed on April 14, 2025, after its AI trading system reportedly lost 100% of user funds in one trade.
• Despite being banned by the Securities and Exchange Commission (SEC) and under active investigation by the EFCC, CBEX has now resumed operations, stirring public uproar and concern.
2. Operations Resume – Quiet but Strategic:
• CBEX has quietly resumed trading, allowing new user registration, trading, and profit withdrawals.
• Two traders confirmed that the platform is back online with fresh withdrawal options, and is trying to regain investor confidence.
• An external audit and insurance verification by a UK firm are ongoing to verify the actual losses and pave the way for compensation.
3. Recovery Plan for Affected Investors:
• Previous investors are currently unable to withdraw funds but are being asked to inject more capital to reactivate wiped-out accounts:
• Those with under $1,000 must add $100.
• Those with over $1,000 must add $200.
• Scheduled Withdrawal Dates:
• June 25, 2025: Up to 50% of the remaining balance can be withdrawn.
• August 25, 2025: Full withdrawal allowed if verification is completed.
• Without completing the insurance verification, balances won’t reflect or be accessible.
4. Activities of Fresh Investors:
• New investors are not affected by the ongoing audits.
• They can register, fund their accounts, trade, and withdraw profits freely, further enticing unsuspecting Nigerians.
• Referral bonuses are being offered and are withdrawable immediately, increasing the lure.
5. Regulatory and Legal Responses:
• The EFCC has declared eight individuals wanted for promoting CBEX, including prominent figures like Johnson Oteno, Israel Mbaluka, and Adefowora Olanipekun.
• One of them, Adefowora Abiodun, has surrendered to the EFCC.
• On April 30, 2025, the EFCC declared foreign national Elie Bitar wanted for his involvement in the fraud.
• The Nigerian Financial Intelligence Unit (NFIU) issued a strong public advisory warning against unregulated digital asset platforms.
6. CBEX’s Defense and Justification:
• The platform’s promoters blame the collapse on a malicious AI hack and insist it was not a scam.
• They say the platform is insured and undergoing UK-led auditing to verify actual losses.
• CBEX also claims only N126 billion was lost, disputing the EFCC’s figure of N1.2 trillion.
• A new Telegram group was launched to share updates, and members are being told to accept the claims process initiated by the insurance firm.
7. Regulatory Crackdown on Similar Platforms:
• The NFIU flagged other high-risk digital platforms, including:
• eWealth Connect (EWC) – Built on Solana blockchain, currently unregulated.
• WWCoin/TOFRO – Promises 6% daily returns; shows classic Ponzi traits.
• Delux – Monetization platform with dubious referral-based structure.
• ADK – Investment and betting hybrid flagged for deceptive claims and Ponzi-like operations.
8. Broader Implications:
• The unfolding CBEX drama has exposed deep gaps in digital investment regulation.
• Despite red flags, many Nigerians are still flocking to risky platforms, driven by promises of quick wealth.
• Regulators urge the public to be cautious and avoid any platform offering unrealistic guaranteed returns or lacking verifiable regulatory backing.
1. Background of the Controversy:
• Crypto Bridge Exchange (CBEX), a digital investment platform, is at the center of a massive N1.2 trillion fraud scandal, affecting over 600,000 Nigerians.
• The platform allegedly collapsed on April 14, 2025, after its AI trading system reportedly lost 100% of user funds in one trade.
• Despite being banned by the Securities and Exchange Commission (SEC) and under active investigation by the EFCC, CBEX has now resumed operations, stirring public uproar and concern.
2. Operations Resume – Quiet but Strategic:
• CBEX has quietly resumed trading, allowing new user registration, trading, and profit withdrawals.
• Two traders confirmed that the platform is back online with fresh withdrawal options, and is trying to regain investor confidence.
• An external audit and insurance verification by a UK firm are ongoing to verify the actual losses and pave the way for compensation.
3. Recovery Plan for Affected Investors:
• Previous investors are currently unable to withdraw funds but are being asked to inject more capital to reactivate wiped-out accounts:
• Those with under $1,000 must add $100.
• Those with over $1,000 must add $200.
• Scheduled Withdrawal Dates:
• June 25, 2025: Up to 50% of the remaining balance can be withdrawn.
• August 25, 2025: Full withdrawal allowed if verification is completed.
• Without completing the insurance verification, balances won’t reflect or be accessible.
4. Activities of Fresh Investors:
• New investors are not affected by the ongoing audits.
• They can register, fund their accounts, trade, and withdraw profits freely, further enticing unsuspecting Nigerians.
• Referral bonuses are being offered and are withdrawable immediately, increasing the lure.
5. Regulatory and Legal Responses:
• The EFCC has declared eight individuals wanted for promoting CBEX, including prominent figures like Johnson Oteno, Israel Mbaluka, and Adefowora Olanipekun.
• One of them, Adefowora Abiodun, has surrendered to the EFCC.
• On April 30, 2025, the EFCC declared foreign national Elie Bitar wanted for his involvement in the fraud.
• The Nigerian Financial Intelligence Unit (NFIU) issued a strong public advisory warning against unregulated digital asset platforms.
6. CBEX’s Defense and Justification:
• The platform’s promoters blame the collapse on a malicious AI hack and insist it was not a scam.
• They say the platform is insured and undergoing UK-led auditing to verify actual losses.
• CBEX also claims only N126 billion was lost, disputing the EFCC’s figure of N1.2 trillion.
• A new Telegram group was launched to share updates, and members are being told to accept the claims process initiated by the insurance firm.
7. Regulatory Crackdown on Similar Platforms:
• The NFIU flagged other high-risk digital platforms, including:
• eWealth Connect (EWC) – Built on Solana blockchain, currently unregulated.
• WWCoin/TOFRO – Promises 6% daily returns; shows classic Ponzi traits.
• Delux – Monetization platform with dubious referral-based structure.
• ADK – Investment and betting hybrid flagged for deceptive claims and Ponzi-like operations.
8. Broader Implications:
• The unfolding CBEX drama has exposed deep gaps in digital investment regulation.
• Despite red flags, many Nigerians are still flocking to risky platforms, driven by promises of quick wealth.
• Regulators urge the public to be cautious and avoid any platform offering unrealistic guaranteed returns or lacking verifiable regulatory backing.