Nigerian Traders Left Reeling After CBEX Collapse
The collapse of cryptocurrency exchange platform CBEX has caused outrage in Nigeria. Hundreds of users reported that their balances were wiped out after the exchange abruptly suspended withdrawals on April 9 due to a “security breach.”
Despite promises to refund customers by April 15, traders say their money vanished completely. Some had put their life savings on CBEX, believing the platform’s assurances of high returns.
Tears of Investors Who Were Scammed by CBEX
Social media was filled with videos of upset customers of CBEX. One of the traders, who reportedly lost 8.7 million naira (approximately $5,432), was seen crying as he shared his account balance update.
“Zero balance, there’s nothing there,” he clarified in a video, indicating that he had just signed up on the platform two weeks ago.
CBEX Office Looted in Ibadan
Agrieved investors stormed into action. A crowd assailed the CBEX office within the Oke Ado area of Ibadan, making off with air conditioners, fans, windows, and other equipment.
The platform had shut down its Telegram channels and erased user balances, fueling the ire.
SEC Issues Warning Against Unregistered Platforms
Following the rampage, Nigeria’s Securities and Exchange Commission (SEC) issued a warning against unregistered digital investment platforms.
Even though CBEX was not named specifically, SEC Director Emomotimi Agama referred to a “certain platform” operating illegally. He emphasized the authority of the commission to prosecute illegal platforms and influencers touting them.
CBEX Already Warned by Hong Kong Regulators
This is not the first red flag for CBEX. In April 2024, the Hong Kong Securities and Futures Commission (SFC) warned that the exchange was suspicious, due to fake withdrawal documents and misrepresentations regarding licensing.
CBEX issued false claims of being licensed to operate in Canada and Japan. The SFC was unable to locate any regulatory role in either nation.
CBEX’s Dubious Business Model
CBEX marketed itself as an AI-based crypto exchange offering 100% returns in a single month. It accepted deposits exclusively in U.S. dollars and relied heavily on referral bonuses—traits common to classic Ponzi schemes.
By early 2025, forum members such as those on Nairaland were already questioning the validity of the project. With withdrawals becoming atrociously impossible in April, panic quickly set in.
Final Thoughts
The CBEX saga reflects growing peril in the unregulated crypto environment. As more investors fall prey to digital deception, experts urge caution and prudence when dealing with online investment frauds.
