In a shocking turn of events, thousands of Nigerians have fallen victim to the collapse of CBEX, a digital asset trading platform that promised investors eye-popping returns. The platform, which operated under the guise of legitimacy, has left many users reeling after their account balances plummeted to zero, following a suspension of withdrawals announced on April 9, 2025. The situation escalated dramatically when angry investors stormed the CBEX office in Ibadan, leading to widespread looting as they expressed their outrage over lost savings.
According to reports by BBC Pidgin, the platform had cited a "security breach" as the reason for halting withdrawals, assuring users that they would receive a full return on their investments by April 15, 2025. However, many users found their accounts drained, leading to emotional scenes as traders shared their devastating stories on social media. One devastated investor, who claimed to have lost 8.7 million naira (approximately $5,432), was filmed crying, saying, "Guys, they said I should check my balance now. Zero balance, there’s nothing there. To think I just did this thing two weeks ago."
The fallout from the CBEX collapse has been severe, with early estimates suggesting that total investor losses could be around ₦1.3 trillion (roughly $800 million). However, independent analyst Specter has suggested that the actual losses may be closer to $12 million, as many of the claims circulating on social media are unverified. Regardless of the exact figures, the emotional and financial toll on investors is palpable.
CBEX, which falsely branded itself as “China Beijing Equity Exchange,” gained traction in Nigeria by presenting itself as an international trading firm that utilized artificial intelligence to generate profits. The platform promised an astonishing 100% return on investment within just 30 days, a classic red flag for Ponzi schemes. By February 2025, concerns about its legitimacy began to surface on platforms like Nairaland, where users drew parallels between CBEX and historical Ponzi schemes.
As news of the collapse spread, the Nigerian Securities and Exchange Commission (SEC) issued a warning about the dangers of unregulated digital investment platforms. SEC Director Emomotimi Agama did not explicitly name CBEX but alluded to it when he stated, "Recently, a particular platform has gained attention online with numerous reports suggesting its shutdown. If a platform is not registered with the SEC, it is illegal." This warning came amid growing scrutiny of digital asset platforms operating without oversight.
The SEC's concerns are not unfounded. CBEX had previously been flagged by the Hong Kong Securities and Futures Commission in April 2024, which described it as a suspicious trading platform. Investors had reported difficulties withdrawing their assets, raising alarms about the platform's operations. Despite these warnings, many Nigerians were lured in by the promise of high returns and the allure of a sophisticated trading platform.
In the wake of the collapse, the chaos at CBEX's office in Ibadan was palpable. Videos circulated online showing furious investors looting the premises, taking everything from air conditioners to office furniture. The Nigerian police and members of Operation Amotekun were deployed to the area to restore order, following the violent outburst from angry customers.
Security analyst Taiwo Owolabi conducted an investigation into the operations of CBEX and revealed how the platform operated like a Ponzi scheme, using funds from new investors to pay returns to earlier ones. He noted that the platform's promise of doubling investments was unsustainable and that many investors had ignored the red flags. "CBEX promised a mouth-watering 100% return on crypto investments in 30 days," he remarked, highlighting the unrealistic nature of such claims.
In a desperate attempt to extract more money from its users, CBEX reportedly asked some investors to pay verification fees ranging from $100 to $200 to access partial withdrawals. This tactic has only fueled the anger of those who feel cheated and betrayed.
The collapse of CBEX is a stark reminder of Nigeria's troubled history with Ponzi schemes. From the infamous MMM scheme that left millions devastated in 2016 to various other scams that have plagued the nation, the cycle of exploitation continues. The Nigeria Deposit Insurance Corporation has estimated that Nigerians lost ₦911.45 billion to Ponzi schemes over the past 23 years, with many falling prey to the same tactics time and again.
As the dust settles on the CBEX debacle, experts are urging a more vigilant approach to investment opportunities. The SEC has emphasized the importance of verifying the regulatory status of investment platforms before committing funds. With the recent enactment of the Investment and Securities Act (ISA) 2025, there is hope for stronger regulatory oversight and penalties for those who promote fraudulent schemes.
In conclusion, the CBEX collapse serves as a painful lesson for investors. The allure of quick wealth can often cloud judgment, leading to devastating consequences. As Nigerians grapple with the fallout from this latest financial scandal, the call for greater financial education and awareness has never been more pressing. If the past teaches us anything, it’s that if something seems too good to be true, it probably is.
