CBEX reopens despite SEC ban and continuing N1.2 trillion fraud investigation

CBEX has resumed its operations despite being under investigation for an alleged N1.2 trillion digital trading fraud and facing a ban by Nigeria’s Securities and Exchange Commission. The platform is allowing new users to sign up, trade, and withdraw funds, prompting questions about the ongoing probe and investor trust in the company.

Following its sudden collapse in April, CBEX was accused of defrauding over 600,000 Nigerians, leading the SEC to label it an illegal investment operation. Despite this, the platform has quietly reopened and is now offering new withdrawal options to rebuild investor confidence.

An external financial audit by a UK-based insurance firm is currently underway to verify the actual amount lost by CBEX customers. The audit is expected to conclude by 25 June 2025, allowing affected investors to potentially reclaim their funds, which have been inaccessible for several weeks.

The EFCC has confirmed that it is investigating the activities of CBEX. The firm, which was founded in 2024 and gained certification from the EFCC’s Special Control Unit Against Money Laundering in January 2025, came under scrutiny after losing N1.2 trillion in investor funds on 14 April 2025.

Eight individuals linked to CBEX, including Johnson Oteno and Israel Mbaluka, have been declared wanted by the EFCC in connection with the alleged fraud. Adefowora Abiodun, a prominent figure in the platform, voluntarily surrendered himself for questioning recently.

Despite regulatory warnings, CBEX has resumed operations and allowed new users to sign up and trade without restrictions. The platform’s promoters maintain that they are not running a scam and that the massive losses were caused by an AI trading error on 14 April. They claim that their platform and app are insured and that affected users could be compensated following the audit.

CBEX is registered in the United Kingdom and expanded its services to Nigeria, with operations also present in Kenya, South Africa, and Egypt. A representative named Laura shared in a Telegram group linked to the platform that the April incident was likely due to a sophisticated cyberattack rather than a simple breach.

The EFCC has declared Elie Bitar wanted for his alleged involvement in CBEX-related fraud, urging the public to share any information on his whereabouts. The Nigerian Financial Intelligence Unit (NFIU) has also issued a public warning against unregulated digital asset investment platforms, listing several high-risk schemes, including eWealth Connect, WWCoin (TOFRO), Delux, and ADK.

Dr Emomotimi Agama, the SEC’s Director-General, cautioned Nigerians against assuming the legitimacy of investment schemes based solely on Corporate Affairs Commission or EFCC certifications. He emphasized that only SEC registration provides regulatory approval for such schemes in Nigeria, warning citizens to be cautious of fraudulent platforms that make false promises of high profits and quick returns.