By Toba Owojaiye
Abuja, Nigeria
In one of the most devastating financial frauds in Nigeria’s history, the collapse of CryptoBridge Exchange (CBEX) has wiped out over N2 trillion in investors’ funds, with stakeholders in the oil and gas industry emerging as the scheme’s biggest casualties.
Truth Live News gathered that the Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC) have launched full-scale investigations and pledged to bring the perpetrators to justice.
Investigations revealed that over 50% of the losses—exceeding N1 trillion—were incurred by investors in the downstream petroleum sector. A senior operator who spoke on condition of anonymity stated that many victims had invested company funds and personal savings, hoping to double their returns in 30 days as promised by CBEX.
The scheme, which disguised itself as a digital asset exchange platform, maintained prominent offices in Lagos, Abuja, and Oyo State, creating a facade of legitimacy. It aggressively marketed its services via mainstream media, celebrity endorsements, and social media influencers, reaching tens of thousands of Nigerians across professional sectors.
“The WhatsApp investment group for oil and gas players is now in turmoil. Some admins have gone underground, while others deny involvement,” said the source.
According to the SEC, CBEX operated without regulatory approval. In an official circular dated April 18, 2025, the Commission clarified that CBEX was never licensed to function as a digital assets exchange, nor to solicit or manage investments from the public.
“The platform offered 100% returns in 30 days—a clear red flag under our regulations. CBEX is not, and has never been, registered by the Commission,” said Dr. Emomotimi Agama, SEC Director General.
The SEC also noted that CBEX obtained Corporate Affairs Commission (CAC) registration and even presented forged EFCC clearance letters to give an impression of credibility, further misleading investors.
The CBEX scam bears chilling similarities to previous Ponzi schemes like MMM, MBA Forex, and Chinmark Group—all of which capitalized on public trust deficits, weak regulation enforcement, and economic desperation. Industry data shows that since 2016, Nigerians have lost over N5.2 trillion cumulatively to unregulated investment platforms.
CBEX used a referral-based growth system, promising commissions for onboarding new investors. As inflow slowed, withdrawal requests were suspended, and the company’s offices were abruptly shut down, with founders now reportedly at large.
The EFCC has confirmed that it is working closely with the SEC to track assets, freeze suspicious accounts, and arrest CBEX’s key promoters. The anti-graft agency said it has so far received over 7,500 petitions from victims across 18 states, and international partners are being engaged to trace offshore funds.
“We are making progress on asset tracing and have begun detaining individuals linked to the scheme. The full weight of the law will be applied,” an EFCC official said.
The CBEX scandal has reignited criticism of regulatory agencies, with investors blaming the SEC and the Central Bank of Nigeria (CBN) for delayed intervention. Financial experts are calling for a dedicated digital investment oversight bureau to detect and shut down fraudulent fintechs before public damage occurs.
“We need a system where registration with CAC is not misconstrued as regulatory approval. Nigerians must verify investment platforms via official SEC portals before parting with money,” said Dr. Ifeanyi Igbokwe, a capital markets analyst.
Dr. Agama reassured the public that the SEC is committed to restoring investor confidence and strengthening its fintech oversight framework. He emphasized that while innovation is welcome in financial services, it must operate within the bounds of regulation.
“We will prosecute CBEX promoters. The law empowers us to protect investors and ensure market integrity. No one involved in this fraud will walk free,” he vowed.