Nigerians across various social media platforms are counting their losses as the digital asset trading platform, CBEX, reportedly siphoned over N1.3 trillion from investors’ accounts. The platform, which promised high returns, abruptly crashed on Monday, leaving its users' funds inaccessible.
Investors were shocked when they discovered that the money in their wallets had vanished. CBEX, which had gained popularity for offering returns of 100% ROI in just 30 days, locked its Telegram channels, suspended withdrawals, and started offering a lifeline with suspicious $2,000 and $1,000 verification fees for $200 and $100 verification, respectively.
Cryptocurrency expert and security analyst Taiwo Owolabi, speaking during a discussion on the X space organized by Trending X, confirmed that data analysis showed the stolen funds were moved to a TRX address (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf), with a total of $847 million in USDT already stolen, a figure likely to rise.
Owolabi explained that the invested funds are gone for good. He pointed out that CBEX was not a licensed platform and had designed a fake website that mimicked the legitimate ByBit platform. The site’s purpose, he claimed, was to trick users into believing that a security breach had caused the disappearance of funds when, in reality, the money was being transferred to other wallets and converted into other cryptocurrencies. "When you log into your account, there is literally no money on your profile. What you see are just numbers," Owolabi said, adding that any trading activity was fake and the so-called AI trading was nothing but a ploy to keep users invested.
CBEX, which claimed to create a secure and transparent environment for transactions, had been accused of operating a Ponzi-like scheme, where user funds were used to pay other investors, while the platform’s creators pocketed the difference.
Regarding whether Nigerians can still withdraw their money, Owolabi stated that all funds are effectively gone unless users pay the exorbitant verification fees, which would only allow some to receive payments while leaving others with nothing. This approach mirrors that of previous Ponzi schemes, he explained, where some investors are paid to attract new ones, perpetuating the cycle of fraud.
In response to the growing concerns, the Securities and Exchange Commission (SEC) has issued a warning to Nigerians, stating that operating an online forex trading platform or providing related services without prior registration with the commission is now illegal under the newly signed Investment and Securities Act (ISA) 2025. The SEC emphasized that any business in this sector must be registered with the commission to avoid sanctions.
The commission’s Director-General, Dr. Emomotimi Agama, hailed the new law as a landmark step to ensure investor protection and market confidence, particularly in the digital asset sector. “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama affirmed.
The SEC has called for further clarity and regulatory measures to enhance oversight of virtual and digital asset exchanges in the country. With the rise of such fraudulent platforms, Nigerian investors are urged to proceed with caution and ensure they engage only with legitimate and regulated platforms.
