Nigerians are expressing their frustration and losses on social media after a digital asset trading platform called CBEX reportedly lost over ₦1.3 trillion from investors’ accounts. The platform experienced a major crash on Monday, leading to a sudden disappearance of investors’ wallets.
CBEX has since locked its Telegram channels and halted withdrawals. In a controversial move, the platform offered investors a chance to recover some funds by requiring verification fees of $200 for $2,000 or $100 for $1,000.
Taiwo Owolabi, a cryptocurrency expert and security analyst, discussed the incident during a live analysis on X (formerly Twitter). He revealed that a total of $847 million in USDT has reportedly been stolen and that the situation may worsen. According to Owolabi, evidence suggests that these funds were transferred to a TRX address (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf).
“The invested funds are gone because CBEX is not a licensed platform,” Owolabi explained. “The creators built a weak website designed to mimic ByBit, a legitimate trading platform, in a bid to trick investors. They moved money from TRX wallets to disguise the theft.”
He added that when users log into their accounts, they only see numbers representing their supposed balances. “All the activities you think are increasing your money are fake; it’s an illusion created to keep investors engaged and hopeful until it’s time to withdraw.”
What Exactly Is CBEX?
CBEX is a digital trading platform that claimed to offer investors a 100% return on investment within 30 days. It promised a secure and transparent transaction environment, but its operations are now under intense scrutiny amid rising fraud allegations. Reports indicate that CBEX displayed fake withdrawal records to hide the difficulties users faced when trying to access their funds.
Owolabi revealed that the only way some investors might recover any money is by paying the verification fees, which seems reminiscent of classic Ponzi schemes where one group of investors is paid using the funds from later investors.
SEC’s Warning to Investors
The Securities and Exchange Commission (SEC) of Nigeria weighed in on the matter, clarifying that, under the newly signed Investment and Securities Act (ISA) 2025, it is now illegal for any entity to operate online forex trading platforms or offer related services without prior registration with the SEC.
“Any business operating in this area without registration is committing an offense in Nigeria,” the SEC stated. They advised businesses to reach out for guidance on how to register to avoid penalties.
Dr. Emomotimi Agama, the SEC’s director general, described the new law as a “landmark step” in enhancing Nigeria’s capital market. He emphasized the SEC’s commitment to fostering innovation while ensuring investor protection and market integrity.
In conclusion, as the fallout from the CBEX incident unfolds, investors are left wondering if they will ever regain access to their funds. If you are affected or considering investing in similar platforms, it is crucial to exercise caution and be aware of the regulatory environment.
