By Adewale Sanyaolu
Strong indications emerged at the weekend that oil and gas investors may have accounted for over 50 per cent losses recorded in the Crypto Bridge Exchange (CBEX), a digital investment platform running a Ponzi scheme but registered as ST TECHNOLOGIES LTD, with physical offices in Idimu, Lagos, Abuja and Ibadan, Oyo State
Thousands of Nigerians had their fingers burnt last week after the abrupt collapse of the platform, taking with it over $850 million of investors’ funds.
The fallout has sparked widespread distress, with victims sharing devastating stories on social media.
An oil and gas operator close to the deal said that the majority of those involved in the scam in the oil and gas sector were downstream operators.
The source, who pleaded not to be named because of the sensitive nature of the deal, currently undergoing investigation by the relevant anti-graft agencies, said the figures being bandied around were grossly downplayed.
He explained that the ponzi scheme had claimed over N1 trillion worth of investments among oil and gas operators alone.
He added that the WhatsApp group of the oil and gas investors is currently in crisis, as some of the admins are currently on the run, while those not on the run are equally absolving themselves of any blame.
“I can confidently tell you that the investments by oil and gas operators that have been wiped off in this fraudulent scheme is in excess of N1 trillion. Forget about all those figures circulating on social media. If oil and gas investors invested over N1 trillion, how could the total loss be put at N1.3 trillion?”
The source further blamed the Securities and Exchange Commission (SEC) for being a complacent and weak regulator.
He added that the operators of CBEX were not operating in isolation because they had offices across the country and were also promoting their fraudulent investment scheme on various social media platforms.
“So why should SEC wait till the scheme crashed before coming out to release a statement? I think the leadership of SEC should equally be investigated.”
On its part, the Securities and Exchange Commission has declared that Crypto Bridge Exchange, also known as CBEX, is not registered to operate as a digital assets exchange in Nigeria, warning the investing public against transacting with the platform.
In a circular released by the commission on Thursday, it stated that CBEX, operating under various aliases such as ST Technologies International Ltd and Smart Treasure/Super Technology, had been engaging in unauthorised investment solicitation, offering implausibly high returns to unsuspecting Nigerians.
“The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a digital assets exchange, solicit investments from the public, or perform any other function within the Nigerian capital market,” the SEC stated.
CBEX is a digital trading asset platform that gives investors a 100 per cent Return on Investment in 30 days.
However, its operational model now comes under scrutiny as allegations of fraud and deceptive practices emerge. The platform is said to display falsified withdrawal records to mask the difficulties users encounter when trying to access their funds.
According to the capital market regulator, preliminary investigations revealed that CBEX carried out promotional activities aimed at creating a false impression of legitimacy. The platform reportedly lured investors with the promise of guaranteed high returns, failed to honour withdrawal requests, and has since shut down its physical offices amid rising complaints.
The commission noted that pursuant to Section 196 of the Investments and Securities Act 2025, it would collaborate with relevant law enforcement agencies to take enforcement actions against CBEX, its affiliates, and promoters.
According to the statement, the SEC Director General, Emomotimi Agama, said the commission is launching a more robust and coordinated enforcement regime against illegal and unregistered investment schemes, commonly referred to as Ponzi schemes.
He noted that the newly enacted Investments and Securities Act 2025 grants the SEC enhanced powers to prosecute operators of such schemes, including those in the digital and virtual assets space.
“Promoters of CBEX will not go scot-free. The new law gives the Commission the legal backing to protect investors and restore market confidence,” Agama stated.
He reiterated the SEC’s commitment to supporting innovation in financial services but emphasised that all innovations must occur within a regulated environment that prioritises investor protection and market integrity.
The federal government, while sympathising with victims of the digital investment platform CBEX last Wednesday, stressed that Nigerians must work together to end the rise of Ponzi schemes in the country.