EXPLAINER: What’s going on with CBEX?

Thousands of Nigerians are currently grappling with devastating financial losses after the dramatic collapse of CBEX, a digital asset “trading” platform that promised mouthwatering returns.

CBEX has now been exposed as one of the largest Ponzi schemes in Nigeria’s history, allegedly swindling over N1.3 trillion from unsuspecting investors.

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According to online reports, the digital trading platform crashed on Monday after the money in their investors’ wallets vanished.

What was CBEX?

CBEX branded itself as a digital investment platform that offered an almost too-good-to-be-true promise: 100% Return on Investment (ROI) in just 30 days. It claimed to be a secure, transparent, and AI-powered trading environment, drawing thousands of Nigerians eager for fast profits.

But beneath its polished surface, the platform was nothing more than a deceptive scheme, according to experts.

The red flags ignored

Unrealistic RoI: Promising 100% in 30 days is a major red flag in the investment world.

Lack of Regulation: CBEX operated outside the oversight of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

Fake Interface: According to cryptocurrency expert Taiwo Owolabi, the CBEX site was designed to mimic ByBit, a legitimate trading platform, but lacked similar security and actual trading infrastructure.

Falsified Activity: Owolabi also revealed that the platform showed fake account balances and manufactured trading results to give users the illusion their money was growing. All the so-called AI trading features were simulated, the crypto expert added.

The Collapse

On Monday, CBEX became inaccessible. Users could no longer log in or withdraw funds. Some who logged in saw their wallet balances wiped to zero.

Social media exploded with reactions, especially from women and families who said they lost life savings and emergency funds.

Nigerian women in tears after allegedly losing millions to crashed CBEX trading platform (Photo: Punch)

CBEX locked its Telegram channels, postponed withdrawals, and bizarrely offered users a “lifeline”:

• Pay $100 for $1,000 verification
• Or $200 for $2,000 verification

This was yet another ploy to extort more money from already-defrauded investors, according to Owolabi. “It is a rob Peter to pay Paul’ deal,” he said.

Where did the money go?

Expert analysis revealed that the stolen funds — valued at over $847 million in USDT (about N1.3 trillion) — were moved to a TRX (Tron) wallet and likely converted to Ethereum (ETH) to hide the trail.

CBEX’s business model was pure Ponzi:

When a user “withdrew” money, they were actually receiving another person’s deposit.

Most people reinvested their earnings out of greed, unknowingly fueling the scam further.

Meanwhile, the operators quietly drained the actual funds from the system.

Can victims recover their money?

In short: No.

According to Owolabi, the funds are gone. The so-called verification fees are simply a last gasp by the fraudsters to squeeze out more money before disappearing entirely.

This scam is a chilling reminder of similar Ponzi schemes that have haunted Nigerians in the past — from MMM to Loom.

The aftermath

Financial Devastation: Countless Nigerians are now broke, in debt, and emotionally shattered. Some took loans, sold properties, or emptied savings to invest, according to social media accounts.

Blame and Reflection: While many sympathise with the victims, others point out that the red flags were glaring.

Ongoing Risks: CBEX isn’t an isolated case. As long as unregulated digital investment schemes exist, Nigerians remain at risk of exploitation.

Key takeaways

• If it sounds too good to be true, it probably is.
• Always verify if a platform is registered with CBN or SEC.
• Avoid platforms that lack transparency, push aggressive referrals, or promise fixed high returns.
• Be cautious of emotional marketing, especially on WhatsApp, Telegram, and other closed platforms.

SEC’s reaction

Meanwhile, SEC has said, in accordance with the Investment and Securities Act (ISA) 2025 recently signed by President Bola Tinubu, it is now an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.

“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.

“Any business entity with the plan of setting up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions,” it added.

SEC Nigeria

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The commission therefore called on stakeholders in the financial and investment ecosystem to familiarise themselves with the new provisions and ensure full compliance with the new Act.

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