Thousands of Nigerians are in shock after a popular digital trading platform, CBEX, suddenly shut down, wiping off investor funds said to be worth more than ₦1.3 trillion.
The crash happened on Monday, and ever since, investors have been crying out on social media about how their savings vanished without a trace.
CBEX had claimed to be a crypto-based digital asset trading platform that offered a 100% return on investment (ROI) within 30 days—a promise that drew in crowds of eager participants.
But things quickly took a dark turn.
Wallets Emptied, Telegram Channels Locked
Right before the crash, users noticed that money in their CBEX wallets had disappeared. Then, the platform shut down its Telegram channels and froze all withdrawals.
Strangely, CBEX offered a so-called “lifeline” to victims: they could get back $2,000 if they paid $200 for account verification—or $1,000 for a $100 fee.
This raised more red flags.
People have stormed CBEX office in Oke Ado, Ibadan, to loot what remained of their investments after the Ponzi scheme platform collapsed, trapping millions of naira. pic.twitter.com/GiiN4mvdWp
— Oyo Affairs (@Oyoaffairs) April 14, 2025
On a live X (formerly Twitter) Space hosted by Trending X, crypto and security expert Taiwo Owolabi gave a deep dive into how the alleged scam worked.
According to Owolabi, the stolen money—worth at least $847 million in USDT and possibly still climbing—was tracked to a TRX (Tron) address: TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf.
He said, “CBEX isn’t licensed. They built a fake website that looks like ByBit just to trick people.”
Owolabi broke down the scam’s process:
“You pay into their TRX wallet. Once they receive the funds, they immediately transfer the money into another wallet, convert it to USDT, and then move it to ETH. Meanwhile, your CBEX account only shows fake numbers—there’s no real money there.”
He added that the so-called AI trading and daily returns were all fake. When people asked for withdrawals, they were paid with money from new users.
“It’s the same old ‘rob Peter to pay Paul’ tactic. The more people came in, the longer they sustained the lie,” he said.
Fake Trading, Fake Returns, Real Losses
Many people now understand that CBEX’s operations were a classic Ponzi scheme.
They used fake stats, staged testimonials, and false withdrawal records to make the platform look trustworthy.
It even fooled tech-savvy Nigerians.
In the past few days, videos have surfaced online showing weeping investors—some claiming to have lost millions—storming CBEX offices in Ibadan, demanding answers.
But the offices are reportedly empty.
Can Victims Still Recover Their Money?
Owolabi said bluntly: “The money is gone. Unless people pay those $100 and $200 verification fees—which are likely another scam—no one is getting a refund.”
He warned that this is how similar schemes like MMM, Ultimate Cycler, and RackSterli collapsed.
The structure always looks the same: big promises, fake earnings, and a final crash.
SEC Issues Warning, New Law in Force
Reacting to the saga, Nigeria’s Securities and Exchange Commission (SEC) has warned citizens against investing in unregistered digital platforms.
The SEC said that under the newly signed Investments and Securities Act 2025 (ISA 2025), it is now illegal for any group to run an online forex or asset trading service in Nigeria without being officially registered.
“It’s an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading or related services,” the SEC stated.
The new law gives SEC the power to monitor and regulate platforms like CBEX. It can now supervise commodity exchanges, digital asset platforms, virtual exchanges, and others.
Dr. Emomotimi Agama, the SEC Director General, described the law as a “landmark step” that will improve investor protection and restore trust in Nigeria’s capital markets.
He said the law ensures that new and risky market platforms, especially digital trading apps, will be held accountable.
Nigerians Caught in a Web of Digital Fraud
CBEX isn’t the first investment platform to defraud Nigerians, and sadly, it may not be the last.
Experts are urging the public to always verify the registration status of any investment company with the SEC before committing funds.
As of now, thousands of Nigerians are left in pain, trying to come to terms with the loss of their life savings.
Many are calling for government intervention, investigations, and justice for those affected.
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