Nigeria is no stranger to Ponzi schemes, and the recent collapse of CBEX has added yet another name to a notorious list of financial scams. Investors report that the digital platform, launched in July 2024, has vanished with over N1.3 trillion from their wallets, crashing and igniting uproar among users on April 15.
CBEX quickly gained traction by promising a staggering 100% return on investments within 30 days and incentivizing users to refer new members with bonuses based on their referral networks. Buzz began to build when notable X user @Letter_to_Jack warned on April 9 about the platform’s red flags, urging potential users to exercise caution.
By April 11, investors grew increasingly anxious as many reported withdrawal issues. Despite assurances from CBEX representatives that everything was operational, panic set in. "They told us it was just a rumor," said one investor, noting that members were still hopeful withdrawals would resume.
However, by the time the platform ceased operations, many investors had lost large sums, with individuals like Femi Azeez stating they were out over N3 million. In the aftermath, CBEX locked its Telegram channels, restricted WhatsApp communication, and attempted to impose verification fees—demanding $100 to unlock funds.
Social media became a hotspot for complaints, with angry investors sharing videos of their protests at CBEX offices in Ibadan and Lagos. During an X space organized by Trending X, security analyst Taiwo Owolabi revealed tracking of stolen funds to a specific TRX address, indicating that losses could total as much as $847 million in USDT.
Owolabi highlighted that the platform appeared designed to mimic a legitimate site, ByBit, to instill confidence while funneling money into TRX accounts, quickly converting it to USDT and Ethereum. Users logging into their accounts found nothing remaining, a testament to the scheme's deceptive setup.
The Securities and Exchange Commission (SEC) confirmed that CBEX was unregistered and operating illegally. The SEC's director general, Emomotimi Agama, recently cautioned fintech stakeholders about the dangers of unregistered platforms, emphasizing that operating without registration constitutes illegal activity.
Under Nigeria’s revised Investment and Securities Act (ISA 2025), the operators of Ponzi schemes could now face up to 10 years in prison and a fine of N40 million if convicted.
CBEX's downfall adds to a troubling statistic: the Nigeria Deposit Insurance Corporation (NDIC) reported that Ponzi schemes have led to losses exceeding N911.45 billion in the past 23 years, with the infamous MMM contributing N18 billion to that figure alone. The collapse of CBEX serves as a stark reminder of the risks investors face in an environment rife with financial scams.
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