Nigerians are in disbelief and anger following the collapse of a digital asset trading platform, CBEX, which allegedly wiped out over ₦1.3 trillion from investors’ accounts on Monday.
The platform, which had been operating without legal approval from the Nigeria Securities Commission (SEC), experienced a dramatic crash, leaving investors’ funds vanished.
In addition, CBEX locked its Telegram channels and postponed withdrawals, offering investors an option to pay for verification—$2,000 for $200 verification or $1,000 for $100 verification.
This has triggered widespread outrage from Nigerians on social media, particularly on X, where many have shared their frustration and disbelief.
Cryptocurrency expert and security analyst, Taiwo Owolabi, provided some insight into the incident, claiming that the total amount of stolen funds, measured in USDT, is estimated at $847 million, with the possibility of this amount increasing.
Owolabi raised concerns about why Nigerians would invest in an unregistered digital platform that promised a 100% return on investment (ROI), noting that CBEX operated under dubious practices.
“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, and then to ETH. So, when you are logging into your account, there is literally no money on your profile,” Owolabi explained in an X space.
He went on to say that the platform’s AI trading was fake and that when users tried to withdraw, the funds they received were actually from other investors.
On social media, reactions were swift. One user, Steve Fred, expressed his disbelief, writing: “Are we not just fantastically stupid in Nigeria? Nigerians are as gullible as their leaders. How many times will they be scammed before they have sense? How can a company like ‘CBEX’ just appear from thin air and promise you 100 percent ROI in 1 month, and you begin to invest?”
Another user, identified as Oku, also shared his thoughts: “The smaller the profit, the more I TRUST YOU. You have no business doing a business that promises you 50 percent to 100 percent ROI.”
The crash comes on the heels of a warning from the SEC, which had previously advised Nigerians to steer clear of unregistered trading platforms.
The SEC, in line with the newly signed ISA 2025 Act by President Bola Tinubu, has made it clear that it is now illegal for any entity to operate an online forex trading platform or offer related services without first being registered with the commission.
“By virtue of this act, it is an offense 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,” the SEC statement reads.
“Any business entity planning to set 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.”
