In early 2025, Nigeria witnessed the collapse of Crypto Bridge Exchange (CBEX), a fraudulent cryptocurrency platform that lured thousands of investors with promises of extraordinary returns. Operating under aliases such as ST Technologies International Ltd and Super Technology, CBEX claimed to be a legitimate digital asset trading platform, offering investors a 100% return on investment within 30 days. However, these claims were part of a sophisticated Ponzi scheme that ultimately defrauded many Nigerians.
The Rise and Fall of CBEX
CBEX presented itself as an AI-driven cryptocurrency exchange, enticing investors with high returns and referral bonuses. The platform claimed registration with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and showcased various documents to establish credibility. Despite these claims, CBEX was not registered with Nigeria’s Securities and Exchange Commission (SEC), a requirement for operating such financial services in the country.
In April 2025, investors began experiencing issues withdrawing their funds. CBEX attributed these problems to a “security breach” and requested additional verification payments from users to unlock their accounts—a common tactic in fraudulent schemes. Subsequently, the platform became inaccessible, leaving investors unable to retrieve their funds.
Regulatory Response and Investigations
The SEC promptly issued a warning, clarifying that CBEX was never registered to operate in Nigeria and labeling it a Ponzi scheme. The commission emphasized that CBEX engaged in deceptive promotional activities to create a false sense of legitimacy, enticing unsuspecting individuals to invest with promises of implausibly high returns. The SEC announced its intention to collaborate with law enforcement agencies to take appropriate enforcement actions against CBEX and its promoters.
The Economic and Financial Crimes Commission (EFCC) also initiated investigations into CBEX’s operations, working alongside international agencies like INTERPOL to track the perpetrators and recover stolen funds. Reports indicated that CBEX’s operations extended beyond Nigeria, affecting investors in countries like Kenya, and were possibly linked to a larger network of crypto-related frauds.
Impact on Victims
The collapse of CBEX had devastating effects on its investors, many of whom lost their life savings. Reports emerged of individuals losing significant amounts, with some victims expressing their distress on social media platforms. In Ibadan, Oyo State, aggrieved investors reportedly stormed CBEX’s office, which had been abandoned, in a desperate attempt to reclaim their investments.
While initial estimates of the total losses varied, investigations suggested that at least $6.1 million was deposited into CBEX-related wallets. However, the actual figure could be higher, considering the scheme’s reach and the number of affected individuals.
Lessons and Precautions
The CBEX debacle underscores the importance of due diligence when engaging with investment platforms, especially those promising unusually high returns. Investors are advised to verify the registration status of any financial service provider with the SEC or relevant regulatory bodies before committing funds. The SEC has reiterated that entities offering investment opportunities must be duly registered, and failure to comply constitutes a legal offense under the Investments and Securities Act 2025.
As Nigeria continues to navigate the complexities of digital finance, regulatory bodies are enhancing oversight to protect investors and maintain market integrity. The CBEX incident serves as a cautionary tale, highlighting the need for vigilance and regulatory compliance in the evolving financial landscape.