SEC issues fresh warning as CBEX resurfaces despite crackdown

The Nigerian Securities and Exchange Commission (SEC) has again cautioned the public against Crypto Bridge Exchange (CBEX), labelling it a Ponzi-like scheme that lacks regulatory approval. Despite SEC’s April declaration that CBEX was never registered to operate as a digital asset or investment platform, the scheme recently resumed operations under the corporate name  ST Technologies International Ltd, allowing new registrations, trading, and withdrawals while older accounts remain locked pending an audit.

 Over 600,000 Nigerians invested roughly ₦1.2–₦1.3 trillion in the ponzi scheme launched in November 2024, lured by the promise of 100% returns in 30 days via “AI trading.” Withdrawals halted abruptly in April, triggering protests and office closures in Lagos, Ibadan, and Abuja .

CBEX’s promoters claim that an insurance-backed audit by a UK firm, will allow existing investors to begin withdrawing funds from June 25, 2025, with a stipulated withdrawal fee starting at  $100 for small balances. However, SEC emphasises these claims are unverified and warned against continued promotion of such schemes, adding it could result to 10 years in prison and ₦20 million fines under the new Investments and Securities Act 2025 .

SEC’s new law explicitly targets unregistered investment schemes. Promoters, including influencers risk jail and hefty fines. Nigeria has a recurring pattern of “too good to be true” schemes—MMM, Famzhi Interbiz—often collapsing and leaving investors stranded. Redditors from Nigeria, Kenya, Uganda, and beyond have flagged CBEX as suspicious. 

Investors are advised to always check the registration of any investment platform via SEC’s portal (www.sec.gov.ng/cmos), Avoid unrealistic guarantees, especially high, short-term returns and be cautious as even temporary payouts are classic ponzi tactics to build trust.