Nigerian SEC Issues Warning Against Crypto Bridge Exchange
The Nigerian Securities and Exchange Commission (SEC) has reiterated its caution against the Crypto Bridge Exchange (CBEX), which operates under various aliases including ST Technologies International Ltd. and Smart Treasure. Alarmingly, the exchange has resumed its activities nationwide without the necessary regulatory authorization.
Unauthorized Fees and Regulatory Breaches
Users have reported that CBEX is demanding fees to facilitate withdrawals, specifically a sum of $200 from those with account balances above $1,000 and $100 for lower balances. The SEC has classified these practices as unauthorized, highlighting a breach of the Investments and Securities Act of 2025.
“Neither CBEX nor its related entities hold the required registration to function within Nigeria’s capital market.”
Furthermore, the SEC has initiated enforcement actions against the exchange and its promoters, owing to their previous unapproved investment operations.
Investor Concerns and Past Incidents
The advisory warned the public to avoid any transactions with CBEX or its affiliates, stressing that engaging with them poses a significant risk of financial loss. Earlier this year, the company came under fire from investors when a sudden halt in withdrawals led to many account balances plummeting to zero.
This prompted a violent reaction from irate customers, who stormed the exchange’s office. CBEX attributed the turmoil to a “security breach” and promised refunds, yet they subsequently shut down their communication channels and allegedly depleted user accounts, leaving investors devastated. Some individuals reported losing substantial amounts, including one victim who claimed to have lost over 8.7 million naira.
SEC Collaborates with Law Enforcement
In response to these violations, the SEC is collaborating with law enforcement to further investigate CBEX’s business practices and to implement legal measures aimed at protecting both investors and the integrity of the financial system at large.
