By TheWatch.NG Investigations Desk
In what is now being described as Nigeria’s most devastating digital financial fraud, CBEX a self-styled AI-powered trading platform has crashed, allegedly wiping out over ₦1.3 trillion (approximately $847 million) from the wallets of thousands of Nigerian investors.
A Digital Mirage Disappears
CBEX promised investors 100% returns within 30 days, coupled with referral bonuses. However, the platform was never registered with Nigeria’s Securities and Exchange Commission (SEC), rendering its operations illegal under the newly enacted Investment and Securities Act (ISA) 2025. The SEC had previously warned Nigerians against investing in unregistered platforms, emphasizing that such entities operate outside the law and pose significant risks to investors.
On April 14, 2025, CBEX abruptly suspended withdrawals, citing a “security breach.” The platform then demanded additional “verification deposits” $100 for accounts under $1,000 and $200 for those above before users could access their funds. Shortly thereafter, CBEX locked its Telegram channels, and users reported that their account balances had been wiped clean.
Anatomy of a Scam
Cryptocurrency expert Taiwo Owolabi analyzed the CBEX operation, revealing that investors’ funds were funneled into a TRX (Tron) wallet, converted to USDT, and then moved to Ethereum wallets. The platform’s website mimicked legitimate exchanges like ByBit to appear trustworthy, but the trading activities displayed were simulated. Investors’ dashboards showed fictitious profits, while their actual funds were siphoned off classic characteristics of a Ponzi scheme.
Public Outcry and Regulatory Response
The collapse has sparked outrage across Nigeria. In Ibadan, angry investors stormed the CBEX office, looting furniture and equipment in protest of their losses.
The SEC has reiterated its warning against unregistered investment platforms. Under the ISA 2025, operating such platforms without proper registration is a criminal offense, punishable by up to 10 years in prison and fines up to ₦40 million. SEC Director-General Emomotimi Agama emphasized the importance of verifying the registration status of any investment platform before committing funds.
A Recurring Pattern
The CBEX debacle is the latest in a series of Ponzi schemes that have plagued Nigeria from the infamous MMM to more recent digital scams. These schemes exploit economic vulnerabilities and the allure of quick wealth, often leaving a trail of financial ruin and eroded public trust.
What You Can Do
If you or someone you know has been affected by the CBEX collapse:
Report the incident to the SEC.
Seek legal counsel to explore options for recourse.
Avoid unregistered platforms, no matter how convincing they appear.
