The Securities and Exchange Commission (SEC) is seeking to freeze the bank accounts and seize assets of CBEX Limited over allegations of operating a massive N1.3 trillion Ponzi scheme.

The regulatory action came during a tribunal hearing on Monday, December 9, 2024, where SEC presented its case against the cryptocurrency exchange platform and its promoters.

According to SEC, CBEX ran an investment scheme without the required license and cheated thousands of people in Nigeria. The commission claims the company used a typical Ponzi setup; paying older investors with money collected from new ones instead of making real business profits.

The alleged N1.3 trillion figure represents one of the largest financial fraud cases in Nigeria’s history. SEC says, CBEX attracted investors with promises of unrealistically high returns on cryptocurrency investments, a common red flag for fraudulent schemes.

However, at the tribunal hearing, SEC’s legal team sought orders to freeze all bank accounts linked to CBEX and its promoters, seize physical and digital assets, and prevent the company from conducting further operations. The commission is also seeking to hold the company’s directors personally liable for the alleged fraud.

The case shows how cryptocurrency-related scams are becoming more common in Nigeria, with regulators finding it hard to keep up as some schemes take advantage of people’s limited knowledge of digital assets. The tribunal is expected to decide on the SEC’s requests in the next few weeks.