CBEX Crash: Investors Lose Over N1.3 Trillion
Nigerians are raising alarms as CBEX, a digital asset trading platform, allegedly vanished with over N1.3 trillion of investors' funds. The platform reportedly crashed on Monday, wiping out users’ wallets while locking Telegram channels and suspending withdrawals.
CBEX offered a dubious "lifeline," asking users to pay $100 or $200 for "verification" to access small withdrawals—a tactic experts warn is another layer of the scam.
How CBEX Operated as a Ponzi Scheme
According to Taiwo Owolabi, a cryptocurrency and security analyst, CBEX was never a legitimate trading platform. Key findings:
Fake Trading System: Users saw numbers in their accounts, but no real money existed.
Stolen Funds: Over $847 million (in USDT) was moved to a TRX wallet, then converted to ETH.
Rob Peter to Pay Paul: Withdrawals were funded by new investors—a classic Ponzi scheme.
Designed to Fail: The website mimicked ByBit but had weak security, making it easy to claim a "hack" later.
Owolabi warns: "All funds are gone unless users pay the verification fees—then CBEX might pay a few to keep the scam going."
What Was CBEX Really Offering?
CBEX promised:
100% ROI in 30 days (an unrealistic return).
A "secure, transparent" trading environment (proven false).
Fake AI trading signals—no real trades occurred.
The platform displayed fake withdrawal records to hide users' inability to access funds.
SEC’s Warning on Unregistered Trading Platforms
The Securities and Exchange Commission (SEC) recently clarified that under the Investment and Securities Act (ISA) 2025, it is now illegal for any forex or crypto trading platform to operate without SEC registration.
Key SEC Updates:
Digital asset exchanges must register with SEC.
Unregistered platforms face sanctions.
-Investors should verify licenses before investing.
Dr. Emomotimi Agama (SEC DG) stated:
"The ISA 2025 ensures investor protection in digital assets. We support innovation—but within a regulated framework."
How to Avoid Crypto Scams in Nigeria
1. Check SEC Registration– Only use platforms licensed by SEC.
2. Avoid Unrealistic ROI – If it sounds too good to be true, it is.
3. Research Withdrawal Policies– Scams delay or block withdrawals.
4. Beware of Pressure Tactics – Ponzi schemes rush you to recruit others.
Final Verdict: Can Nigerians Withdraw from CBEX?
No. Evidence suggests CBEX was a Ponzi scheme, and most funds are irrecoverable. The SEC advises affected users to report to authorities and avoid further payments.
Stay Alert—Stick to Regulated Platforms!
For safe investments, always use SEC-approved exchanges like Binance (registered), Luno, or ByBit (where applicable).
Have you been affected by CBEX? Share your experience in the comments!
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