In a devastating turn of events, the digital trading platform CBEX has left thousands of Nigerians reeling after it abruptly crashed, wiping out investor account balances and allegedly sweeping over N1.3 trillion from unsuspecting investors. The platform, which promised a 100% return on investment within 30 days, attracted a massive following before its sudden collapse on Monday, April 14, 2025.
CBEX had been operating without proper registration with the Securities and Exchange Commission (SEC), a critical oversight that exposed investors to significant risks. The SEC had previously warned Nigerians about the dangers of investing in unregistered platforms, emphasizing that such operations are illegal under the Investment and Securities Act (ISA) 2025.
As investors discovered they could no longer access their funds, widespread panic ensued. Many took to social media to express their frustration and despair, with some sharing heart-wrenching videos of themselves crying over lost savings. The situation escalated when a group of angry investors stormed the CBEX office in Ibadan, looting furniture and valuables in a display of anger and desperation.
Cryptocurrency expert Taiwo Owolabi revealed that the invested funds were moved to a TRX address, with a total of $847 million in USDT believed to have been stolen. CBEX’s tactics, including fake withdrawal records and a poorly designed website mimicking legitimate platforms like ByBit, have been exposed as part of a sophisticated scam.
The collapse of CBEX has sparked a national conversation about financial literacy and the dangers of Ponzi schemes. Many have criticized investors for ignoring warnings and investing in schemes that promise unrealistically high returns. The SEC has reiterated its warnings against unregistered trading platforms, urging Nigerians to exercise caution when investing online.
This incident echoes past financial disasters, such as the MMM collapse, which left millions of Nigerians financially devastated. As the country grapples with economic challenges, the need for robust financial regulation and public awareness about investment risks has never been more pressing.
