Nigerian Government Issues Fresh Warning Against CBEX Crypto Exchange
By Micah Zimmerman
Published June 11, 2025
In a significant move to protect investors, the Nigerian Securities and Exchange Commission (SEC) has issued a renewed warning about the operations of Crypto Bridge Exchange, commonly referred to as CBEX. The warning comes as the exchange has reportedly resumed activities in Nigeria, despite operating without the necessary regulatory approval.
Unauthorized Operations
CBEX, which is also known as ST Technologies International Ltd and Smart Treasure, has been accused of soliciting payments from users who are attempting to withdraw their funds from the platform. Reports indicate that the exchange demands a fee of $200 from users with balances exceeding $1,000 and $100 from those with smaller amounts before processing withdrawal requests. The SEC has classified these requirements as unauthorized and in violation of Nigeria’s Investments and Securities Act 2025. In an official advisory released on Wednesday, the SEC clearly stated that both CBEX and its affiliated entities are not authorized to operate within the Nigerian capital market. The Commission has also confirmed that enforcement actions have already been initiated against CBEX and its promoters due to their involvement in unapproved investment schemes in the past.
Warning to the Public
The SEC has urged the Nigerian public to avoid engaging with CBEX or any associated entities, warning that individuals who choose to transact with the exchange do so at their own risk and may face the prospect of losing their funds. “The Nigerian public is accordingly advised to refrain from patronising or transacting with CBEX or ST Technologies International Ltd (Smart Treasure or Super Technology) as they risk losing their funds,” the advisory states.
Previous Incidents with CBEX
The exchange’s troubled history adds weight to the SEC’s alerts. Earlier this year, following a suspension of withdrawals in April, many Nigerians were left devastated when they discovered their account balances had dropped to zero. The situation led to significant unrest, with reports of customers looting CBEX’s office. The exchange initially attributed the loss of funds to a purported "security breach" and had promised refunds. However, they subsequently closed their communication channels, including Telegram groups, leading to allegations that user funds were indeed wiped from the platform.
Some investors reported heavy losses, with one individual claiming a loss of 8.7 million naira, which has raised public outcry and suspicion regarding the exchange’s legitimacy.
Ongoing Investigations
In response to the situation, the Nigerian SEC is collaborating with law enforcement agencies to thoroughly investigate CBEX’s operations. This initiative aims to ensure the legal repercussions of fraudulent activities within the cryptocurrency landscape, as well as to safeguard investors and maintain the integrity of the broader financial system.
As the SEC continues its efforts to ensure compliance in the crypto sector, this recent warning underscores the importance of regulatory oversight in protecting individuals from potential investment scams and financial losses.
For now, potential investors are advised to exercise caution and vigilance in their financial dealings, especially when engaging with unregulated entities in the cryptocurrency space.
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