CBEX Collapse: Nigerians Lose Over N1.3 Trillion in Alleged Ponzi Scheme
By Abiola Olawale
Investors Left Stranded as Digital Trading Platform Vanishes
Nigerians nationwide are grappling with shock and outrage following the sudden collapse of CBEX, a digital asset trading platform accused of defrauding investors of more than N1.3 trillion. The platform, which had promised investors a 100% return within just 30 days, abruptly shut down on Monday, locking thousands out of their accounts and sparking widespread social media backlash.
How the CBEX Scheme Unfolded
The CBEX platform gained popularity in mid-2024, marketing itself as a revolutionary trading opportunity with high returns and lucrative referral bonuses. However, on Monday, panic spread as the company locked its Telegram channels, halted withdrawals, and reportedly reset investors’ account balances to zero.
The fallout has been severe, with victims taking to social media to express their frustration. “How do we keep falling for this?” lamented one X user, @shegzedon, echoing the sentiments of many.
Physical Backlash and Expert Analysis
In Ibadan, Oyo State, angry youths reportedly looted a CBEX office, stealing equipment in protest. Meanwhile, cryptocurrency expert Taiwo Owolabi revealed during an X Space discussion that approximately $847 million in USDT had been siphoned from the platform.
Owolabi explained that CBEX operated as an unlicensed platform with a deliberately weak website designed to mimic legitimate trading platforms like ByBit. “All the AI trading was fake,” he stated, describing how the scheme recycled funds between investors to maintain the illusion of profitability.
Regulatory Warnings Ignored
The Securities and Exchange Commission (SEC) had previously warned Nigerians about CBEX, declaring it illegal under the Investment and Securities Act (ISA) 2025. SEC Director General Emomotimi Agama emphasized, “If it’s not registered, it’s illegal.”
A Recurring Problem in Nigeria
This incident marks the latest in a series of Ponzi schemes that have plagued Nigeria, following high-profile collapses like MMM in 2016 and MBA Forex between 2018-2021.
For more details, read the original report on The New Diplomat.