The collapse of digital asset trading platform CBEX has triggered outrage, despair, and chaos across Nigeria, with angry users storming the company’s office after their account balances were wiped to zero. The scandal has drawn comparisons to past Ponzi schemes and raised urgent questions about crypto regulation and investor protection in the region.
Exchange Halts Withdrawals, Then Wipes Balances
According to a report by BBC Pidgin, CBEX announced on April 9 that it would suspend all withdrawals, citing a “security breach.” The company promised to restore affected user balances by April 15. However, instead of receiving their funds, hundreds of users reported that their account balances had dropped to zero. The platform also shut down its Telegram groups and social channels, cutting off communication.
Videos circulating on social media show devastated users in tears, many of whom say they lost their life savings. One video features a Nigerian trader who allegedly lost 8.7 million naira (approx. $5,400), exclaiming, “Guys, they said I should check my balance now. Zero balance, there’s nothing there.”
Looting in Ibadan as Investors Seek Justice
Enraged by the apparent rug pull, a group of CBEX users stormed the company’s office in the Oke Ado area of Ibadan, looting valuables including air conditioners, fans, and even glass windows. Footage of the incident went viral, capturing the emotional aftermath of what many are now calling a crypto scam.
The company’s silence and sudden disappearance from online platforms have only deepened suspicions.
Regulatory Warnings and Past Red Flags
Following the incident, the Nigerian Securities and Exchange Commission (SEC) issued a statement warning the public about the risks of using unregistered digital investment platforms. While the SEC did not name CBEX directly, its Director Emomotimi Agama confirmed that the platform was not licensed and therefore operating illegally.
This is not the first time CBEX has faced scrutiny. In April 2024, the Hong Kong Securities and Futures Commission (SFC) flagged CBEX as a suspicious trading platform after multiple complaints about withdrawal issues. Investigations revealed that CBEX falsely claimed to hold a digital asset license in Canada and Japan, though it was not registered in either jurisdiction.
“The entity is suspected to have deceived investors with fake withdrawal records,” the SFC said in a warning to the public.
The CBEX Model: AI-Driven Hype or Ponzi in Disguise?
CBEX gained rapid popularity in late 2024 by promoting itself as a crypto platform powered by AI, claiming to deliver 100% returns in 30 days. The sleek design of its website and referral-based reward system gave it the illusion of legitimacy. However, users could only deposit in USD, and many were lured by get-rich-quick promises.
By early 2025, concerns began to mount. On forums like Nairaland, users flagged similarities between CBEX and MMM, a notorious Ponzi scheme that collapsed in Nigeria in 2016. As more users reported withdrawal issues in March and April, panic spread.
Final Thoughts
The CBEX implosion is a painful reminder of the dangers lurking in the unregulated corners of the crypto world. What began as a promising?
