In a shocking twist, thousands of Nigerians have been left devastated after the collapse of CBEX, a digital asset trading platform that many now believe was a cleverly disguised Ponzi scheme.
Social media has been buzzing with heartbreaking stories of people who lost their savings, as the platform reportedly wiped out over ₦1.3 trillion from investors’ wallets.
The crash happened on Monday, triggering panic and confusion. Users trying to access their accounts were stunned to find empty wallets. To make matters worse, CBEX locked its Telegram groups and suspended withdrawals.
In a last-ditch effort to appear legitimate, the platform began offering “verifications”—promising $2,000 for $200 or $1,000 for $100, a move many experts say is just another ploy to collect more money.
According to Taiwo Owolabi, a crypto analyst who spoke on an X (formerly Twitter) Space discussion hosted by Trending X, data indicates that $847 million in USDT (Tether) has already been stolen—and the figure may rise.
The stolen funds were traced to a TRX (Tron) address where they were converted to USDT and then to Ethereum, making recovery nearly impossible.
“CBEX was never a legitimate platform,” Owolabi explained. “They created a fake version of a known site, ByBit, to mislead people. All the so-called AI trading and profit displays were illusions. What you saw in your dashboard were just numbers—not real money.”
He went further to explain how the scheme operated like a classic Ponzi model—using new investors’ money to pay earlier ones. “They built the perfect trap, preying on greed and the hope of quick wealth,” he said.
What Was CBEX All About?
CBEX claimed to offer 100% Return on Investment in just 30 days, luring thousands with promises of transparency and high earnings. However, users began noticing irregularities with withdrawals, and analysts now say the platform displayed fake withdrawal receipts to deceive users.
Can You Still Get Your Money Back?
In reality, it’s unlikely. Owolabi stated that all funds are gone unless users pay more for so-called verification. “It’s a rob Peter to pay Paul situation,” he warned.
Government Steps In
The Securities and Exchange Commission (SEC) has issued a warning to Nigerians about unlicensed platforms like CBEX. Under the new ISA 2025 Act, recently signed into law by President Bola Tinubu, it is now a criminal offence for any platform to offer online forex or crypto services without proper registration.
Dr. Emomotimi Agama, Director-General of SEC, described the Act as a vital step toward cleaning up Nigeria’s digital trading space. “We support innovation, but it must be regulated to protect our people,” he said.
This situation serves as a painful reminder: If it sounds too good to be true, it probably is. Always verify platforms and ensure they’re licensed before investing your hard-earned money.
Stay informed and protect your finances. Always verify investment platforms with the SEC before committing your money.
Share this story to help others avoid falling into similar traps.
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