Embattled investment platform CBEX resurfaces, launches operation for new investors

Amid the wave of the suspicious investment platform – CBEX, fresh reports have hinted that the embattled platform has resumed operations citing moves to restore investors’ trust with fresh withdrawal options. 

Recall that a few weeks ago, Nigerian investors on the platform recounted their losses after a sudden block in withdrawal caused various outcries. Therein, the Economic and Financial Crimes Commission (EFCC) together with the Securities Exchange Commission (SEC), vowed to clamp down on operators and promoters of CBEX, after the collapse led to a loss of about N1.3 trillion in crypto trading that affected over 600,000 Nigerians.

However, the latest reports alleged that CBEX has quietly resumed operations by enabling new users to register, trade, and withdraw profits despite ongoing investigations against its suspicious operation.

Sources cited by PunchNews 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.

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

Stemming from the ongoing clampdown by the SEC and EFCC on the platform tagged as a Ponzi Scheme, reports explained that CBEX is back to clear these dispositions and prove that applications on the platform are insured.

“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 which cited the source said, adding that previous investors can trade but can’t withdraw.

In another revelation, it was backed that account auditing is required in order to reinstate that the amount lost during the crash was N126 billion as against the widespread belief that CBEX scammed Nigerians of N1.3 trillion.

CBEX, a digital investment platform, offered investors 100 per cent profit after 30 days of purported AI trading. The trading platform started operations in November 2024 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 SEC, as claimed by the Commission’s DG – Emomotimi Agama.

Is CBEX here to finish what it started?

While CBEX runs a suspicious operation, where early investors likely get returns from funds deposited by recruits, and the latter potentially faces losses together, its previous attitude of withdrawal restrictions and lack of transparency, indicated the scheme as a flagoff.

With the hunt for new investors where existing investors are still unable to withdraw their funds, CBEX alleged re-opening of operation in the same old colours further paints suspicious moves that the platform might be here to round off business as usual. During its previous crash, anonymous clamor stated that any investment platform that does not allow a user to withdraw its full capital after deposit is a scam.

Amid these clouds, the EFCC had been hunting for CBEX promoters and individuals related to its operation.

Last week, the Nigerian Federal High Court Headquarters, Abuja, ordered the arrest of six CBEX promoters over an alleged $1 billion scam targeting Nigerians. They include Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede. In a new development on Monday, Adefowora Abiodun, a prominent leader and trader on the platform, voluntarily surrendered himself to the anti-graft agency for interrogation.

The anti-corruption agency also declared a foreign national, Elie Bitar, wanted for his alleged involvement in a cryptocurrency investment fraud linked to CBEX.

In its pledge to eradicate the Ponzi scheme, SEC noted that the Investment and Securities Act (ISA) 2025 enactment would strengthen its commitment to clean up the investment industry, as the recent revocation of licences, suspension of market operators, and crackdowns on unregistered entities are just the beginning of a broader enforcement strategy. Under the new legislation, promoters of fraudulent schemes will face stringent sanctions, including a minimum fine of N20 million and a 10-year jail term.

The Commission’s DG, Dr. Emomotimi Agama, emphasised that the SEC is capable and ready to tackle Ponzi schemes and will be able to deal with anyone caught in the mess.

“Ponzi schemes will no longer be an avenue for fraudsters to deceive investors. The penalties in the new ISA are stiff enough to deter such activities, and we are committed to implementing them fully. We will shut down their operations and the promoters will be made to face the full weight of the law,” he said. 

He also warned Nigerians that registration with the Corporate Affairs Commission and the Special Control Unit Against Money Laundering under the Economic and Financial Crimes Commission does not confer legitimacy on any investment scheme operating in the country.