CBEX Crypto Collapse: SEC Admits Powerlessness as N1.3 Trillion Vanishes in Alleged Ponzi Scheme

 

In a shocking revelation that underscores the growing danger of unregulated online investment platforms, the Securities and Exchange Commission (SEC) has confirmed its inability to assist victims of the now-defunct Crypto Bridge Exchange (CBEX), a digital trading platform that disappeared with investor funds totaling an estimated ₦1.3 trillion.

CBEX, operating under the corporate identity of ST Technologies International Ltd and other aliases such as Smart Treasure and Super Technology, lured approximately 600,000 Nigerians with the promise of astronomical returns—100% profit within just 30 days.

Last Monday, the platform went dark, locking out investors from its channels and leaving thousands in financial turmoil. Speaking to Sunday Vanguard, SEC’s Director General, Dr. Emomotimi Agama, made a stark admission: “There is nothing the Commission can do.”

Agama’s statement dealt a heavy blow to victims, many of whom had hoped that regulatory authorities could intervene or initiate recovery processes. Instead, the Commission stressed that CBEX was never registered nor authorized to solicit investments or operate any financial service under the Nigerian capital market laws.

“We are worried that this went on for long without anyone drawing our attention to it,” Agama said, adding that the Commission has intensified efforts to educate the public on how to detect and avoid fraudulent investment schemes.

A Perfect Ponzi Storm

CBEX employed the classic traits of a Ponzi scheme—grand promises, rapid returns, and flashy online promotions—to build trust and attract a wide user base. SEC’s preliminary findings show that CBEX crafted a deceptive sense of legitimacy, using aggressive promotional tactics to lure unsuspecting investors.

“People must understand that any investment promising absurdly high returns, especially with guarantees and no underlying risk disclosures, is a red flag,” Agama said. “The Investments and Securities Act (ISA) 2025 clearly defines such schemes as illegal.”

Under Section 196 of the ISA, the SEC has committed to working with law enforcement to bring the promoters of CBEX and its affiliates to justice. However, the process may be lengthy and offers no guarantee of fund recovery.

In its statement, the SEC reminded Nigerians to confirm the regulatory status of any financial service or investment entity through the official portal (www.sec.gov.ng/cmos) before committing their money.

Inside the Scam: A Victim Speaks

Among the thousands left in despair is an Abuja-based journalist who shared his personal ordeal. Speaking anonymously, he recounted how he lost ₦500,000 just one week after investing in the now-vanished platform.

“I had been skeptical for months. A close friend kept urging me to try CBEX, claiming he was doubling his money monthly,” he recalled. “Eventually, I gave in and transferred ₦500,000 on April 4. I was added to a Telegram group and everything seemed legitimate—for a few days.”

His fears were confirmed when the Telegram group disappeared and investors could no longer access their accounts. “I noticed that my supposed investment had grown to ₦616,000, and I tried to withdraw, but it was too late. That’s when I knew I’d been scammed,” he lamented.

He considers himself lucky, noting that his wife refused to join after he tried to convince her. “If she had invested too, I’d be in worse shape today.”

A Call for Vigilance

The CBEX debacle is not Nigeria’s first encounter with fraudulent schemes. From MMM to other digital scams, the country has been a hotbed for Ponzi operations exploiting financial desperation and a lack of regulatory awareness.

While the SEC’s hands may be tied in restitution efforts, it continues to urge Nigerians to be more vigilant and critical of investment opportunities that seem “too good to be true.”

“There’s no shortcut to wealth,” Agama stressed. “If an investment model thrives purely on recruiting others or guaranteeing unrealistic returns, it’s not sustainable. It’s fraud.”

As investigations into CBEX continue, regulatory authorities face growing pressure to not only enforce existing laws but to proactively monitor and shut down illegal platforms before they implode.

For the 600,000 Nigerians now nursing devastating financial losses, the collapse of CBEX serves as a harsh reminder: in the volatile world of digital finance, unchecked greed can be just as dangerous as ignorance.