All What You Need To Know About CBEX
In a shocking turn of events, Nigerian investors have been left counting their losses after the unregistered digital asset trading platform CBEX reportedly vanished with over N1.3 trillion from subscribers’ accounts.
The platform, which promised a 100% return on investment in 30 days, suddenly crashed on Monday, leaving investors in a state of panic. Travel guides
According to cryptocurrency expert and security analyst Taiwo Owolabi, the stolen funds have been transferred to a TRX address, with approximately $847 million worth of USDT stolen so far.
Owolabi revealed that CBEX’s website was designed to mimic legitimate trading platforms, but in reality, it was a Ponzi scheme.
“The invested funds are gone because CBEX is not a licensed platform,” Owolabi stressed. “They designed the weak website to convince people in the future that it was a security breach that affected them. Apparently, when you make payments, you pay them into a TRX account, and then, immediately, they move it from that TRX wallet, gather it, convert it to USDT, then to ETH. So, when you are logging into your account, there is literally no money on your profile.
“What you see are just numbers. All the daily activities you do to ‘trade’ increase your money. All the AI trading is fake. When it’s time for withdrawal, they will send you another person’s money.
“Since, you won’t be leaving them because of greed. You will most likely put the money back and even more. So, they will use that same money to pay another person. As you spread the word for them, more people will join and do the same.”
However, CBEX’s operational model has continued to raise suspicions, with allegations of fraud and deceptive practices emerging.
The platform allegedly displays falsified withdrawal records to mask difficulties users encounter when trying to access their funds.
The Securities and Exchange Commission (SEC) has warned Nigerians against investing in Ponzi schemes, emphasizing that operating an online forex trading platform without registration is now an offense under the ISA 2025 Act.
The commission has empowered itself to regulate digital asset exchanges and online foreign exchange platforms, ensuring investor protection and market confidence.
SEC Director General Dr. Emomotimi Agama described the new law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”
As investors struggle to come to terms with their losses, the question remains: Can Nigerians still withdraw their money?
According to Owolabi, it’s unlikely unless users pay verification fees, which would only settle some investors while leaving others to languish.
The CBEX collapse serves as a stark reminder of the risks associated with unregulated digital asset trading platforms.
As the SEC continues to crack down on such schemes, investors are advised to exercise caution and conduct thorough research before investing in any platform.
