CBEX: again, SEC warns Nigerians as ponzi platform resumes operations

Again, the Securities and Exchange Commission (SEC) has issued a stern warning about the unregulated activities of CBEX (Crypto Bridge Exchange), the embattled investment platform flagged as a Ponzi Scheme. 

The Commission advisory comes amid reports that the investment platform, operating under the corporate name ST Technologies International Ltd, has resumed activities. We can confirm that the platform is demanding a withdrawal fee of $100 to $200 from users before they can process their trapped funds. 

In a press statement on Wednesday, the SEC further reinstated that neither CBEX nor its officials are registered or licensed to perform investment-related services in Nigeria. 

The regulator added that the company’s continued operation violates the Investments and Securities Act 2025, under which enforcement actions have already been initiated against the firm and its promoters. 

“The Nigerian public is accordingly advised to REFRAIN from patronising or transacting with CBEX /ST Technologies International Ltd (Smart Treasure or Super Technology) as they risk losing their funds,” the SEC warned.

The commission also noted that it is engaging with various law enforcement agencies to clamp down on its operations and restore confidence within the capital market. 

Recall that CBEX began operation in Nigeria in November 2024. It offered an enticing 100% return on investment within 30 days.

Investigations later revealed that the Ponzi trading platform launched after receiving registration approval from the Corporate Affairs Commission on September 25, 2024, and the EFCC’s Special Control Unit Against Money Laundering on January 16, 2025.

However, the platform failed to register with the Securities and Exchange Commission.

Subsequently, investors on the platform took to social media to bemoan their losses after a sudden block of withdrawals. The episode led to a loss of about N1.3 trillion, reportedly invested by over 600,000 Nigerians.

Following that episode, the Economic and Financial Crimes Commission (EFCC), alongside the SEC, vowed to clamp down on operators and promoters of CBEX.

Also Read: Court orders arrest of 6 CBEX promoters connected with the alleged $1 billion scam.

CBEX’s new operating model 

Some users have reported that their funds have been returned to their accounts. “Someone asked me to log into my CBEX account this morning — they said our balance has been returned,” one said on Tuesday.

However, CBEX is demanding “processing fees” from investors before allowing withdrawals, with $200 for accounts holding more than $1,000 and $100 for smaller balances.

“I think it’s another trap. They said those who had more than \$1,000 must pay \$200, and those with less must pay \$100 before they can proceed,” the investor added.

The situation has raised renewed concerns about the platform’s intentions, stemming from previous suspicious plays. 

However, this is not the first time the platform has attempted a resurface. Recall that in late April, reports claimed that CBEX quietly resumed operations by enabling new users to register, trade, and withdraw profits despite ongoing investigations into its suspicious operation.

It explained that an insurance verification process and external audit of its financial records are ongoing to ascertain the amount lost during its collapse on April 14. While the reason for its supposed crash was not revealed, it added that existing investors will be able to withdraw their funds starting from June 25, when the audit is expected to be concluded by a U.K. insurance company.

“Now, previous investors who have $1,000 as their capital would have to inject $100, and the former account balance would be restored, while persons with over $1,000 would have to put in $200 to bring back the account balance. And we have started seeing people put in these funds to get back their money,” the report added that previous investors can trade but can’t withdraw.

While the clear intent of the platform’s resurgence is still unknown, the Nigerian security agencies have vowed to recover trapped funds for users. 

Recently, the EFCC announced progress in recovering funds misappropriated from the platform. The agency also revealed that a portion of the misappropriated money has been retrieved. However, it declined to specify the amount due to the sensitive and ongoing nature of the recovery operation.

The EFCC also declared the founders, Folashade Odelana and Bamidele Ayodele Abiodun, wanted. In total, 12 people linked to the platform’s operation have been declared wanted.