Panic and frustration are spreading across social media platforms as thousands of Nigerians report losing access to their funds following the collapse of CBEX, a digital asset trading platform that allegedly wiped out over ₦1.3 trillion from investors’ accounts.
The platform reportedly crashed on Monday, with users waking up to find their wallet balances empty. CBEX has since shut down its Telegram channels, suspended withdrawals, and introduced a controversial “verification” scheme—offering $2,000 or $1,000 in returns, but only after users pay a $200 or $100 verification fee, respectively.
Experts Raise Alarm Over Ponzi-Like Structure
Speaking during a space on X (formerly Twitter), hosted by Trending X, cryptocurrency expert and security analyst Taiwo Owolabi disclosed that the stolen funds, amounting to $847 million in USDT (and likely more), were traced to a Tron (TRX) wallet address. The platform, according to Owolabi, was never licensed and operated under a fraudulent structure that mimicked the look of legitimate platforms like ByBit.
“They built a weak front-end website to make it seem like a technical breach when it crashed,” Owolabi explained. “In reality, once you transferred money to their TRX address, it was immediately moved, converted to USDT, then ETH. What you saw on your dashboard was fake—just numbers.”
He added that CBEX ran a classic Ponzi model. “Your ‘profits’ were funded by other users’ deposits. Many people reinvested out of greed, unknowingly helping the scheme survive longer.”
What Is CBEX and Why Was It Popular?
CBEX positioned itself as a digital trading platform promising up to 100% return on investment within 30 days. It marketed itself as transparent and secure, but experts now believe the platform used falsified withdrawal records to lure new investors while hiding its operational flaws.
Can Users Still Withdraw Their Money?
According to Owolabi, the short answer is no. Most of the funds are gone, and the new verification fees are likely another attempt to exploit desperate investors. “It’s just another phase of the scam—settling a few users to keep hope alive while the majority lose everything,” he said.
SEC Issues Warning Against Unlicensed Platforms
Amid rising concerns, Nigeria’s Securities and Exchange Commission (SEC) has issued a stern warning, reaffirming that operating online forex or digital asset trading platforms without proper registration is now a punishable offence under the recently signed Investment and Securities Act (ISA) 2025.
“It is now illegal for any unregistered entity to run an online trading platform or offer related services,” the SEC stated. Entities intending to operate in this space must seek proper registration with the commission to avoid sanctions.
The Director-General of the SEC, Dr. Emomotimi Agama, hailed the new law as a vital step in enhancing investor protection and market transparency. “While we welcome innovation, it must happen within a regulated environment that protects investors and upholds the integrity of the market,” he said.
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