April 16, 2025
In what is being described as one of Nigeria’s most significant digital financial scams, the cryptocurrency trading platform CBEX has collapsed, leaving thousands of investors devastated. On April 15, 2025, over $822 million (approximately ₦1.3 trillion) was reportedly transferred into a private Ethereum wallet, causing user account balances to plummet to zero without prior warning.
CBEX had marketed itself as an AI-driven asset trading platform, promising high returns, which attracted a significant number of investors. However, prior to its collapse, users had reported withdrawal delays and raised concerns about the platform exhibiting characteristics of a Ponzi scheme.
Following the disappearance of funds, CBEX locked its Telegram channels and postponed withdrawals. The platform offered a so-called “verification” process, requiring investors to pay additional fees—$200 for accounts with balances over $1,000 and $100 for those with less.
Cryptocurrency expert and security analyst Taiwo Owolabi explained the mechanics behind the scam: “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. 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.”
The Securities and Exchange Commission (SEC) has reiterated warnings about unregistered trading platforms. In accordance with the Investment and Securities Act 2025, it is now an offense for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.
The Economic and Financial Crimes Commission (EFCC) has been actively combating cryptocurrency-related fraud. In December 2024, the EFCC arrested 792 individuals in Lagos for alleged involvement in cryptocurrency investment and romance scams. The suspects included 114 Chinese nationals, 40 Filipinos, and others, who were reportedly using a building as a training hub to teach Nigerians the art of orchestrating such scams.
The collapse of CBEX serves as a stark reminder of the risks associated with unregulated investment platforms. As one affected investor, Chukwudi Iwuchuwu, lamented, “To my friends who lost their money to the criminals, sorry, but next time, stay away from Ponzi businesses.”
For more information on how to protect yourself from financial scams, please visit the SEC’s official website or consult with a licensed financial advisor www. sec.gov.ng
