Nigerians plundered the offices of digital asset trading platforms after hundreds of users saw their account balances plummet and reach zero after the exchange collapsed.
According to a report by BBC Pidgin, investors were reportedly unable to withdraw their funds after the announcement on April 9th that they would suspend their withdrawal. The platform cited a “secure breach” and promised users full damages by April 15th.
A video circulating on social media platforms showed traders shed tears when they learned that they had lost all their funds after depositing them in their CBEX accounts. Many of them claimed they had invested their lives in the platform, but they remained devastated once they seemed to disappear overnight.
When CBEX crashes, sheds tears across Nigeria.
Over the past few days, countless Nigerians have expressed their heartbreak at their inability to withdraw funds from the platform.
CBEX left many people in Square One. This is a painful reminder that “quick money” schemes often come at a huge cost.
From…pic.twitter.com/pfjvqj1o2j– Gistme9ja (@gistme9j) April 15, 2025
“Everyone said they should check my balance right now. There’s zero balance, there’s nothing there. I think I did this two weeks ago,” said the Nigerian trader, who is said to have lost 8.7 million naira on the platform.
The exchange reportedly closed all telegram groups and wiped out user balances. As a result, a group of angry Nigerian traders began raiding CBEX offices in the Oke Ado area of Ibadan and plundering items.
Videos circulating on social media saw angry mobs obtaining items from the office, including air conditioners, glass window fans and other valuables.
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In light of the incident, Nigeria’s Securities and Exchange Commission has warned its citizens about the risks surrounding unregulated digital investment platforms and potential Ponzi schemes.
Despite not mentioning CBEX by name, SEC Director Emomotimi Agama has made it clear that it is not registered with the SEC, hinting at a controversy over a “specific platform.” Therefore, it was operating illegally in the area.
He further explained that the SEC currently has jurisdiction to investigate and close unlicensed digital trading platforms, and that it has indicted influencers and celebrities in support of the scheme to make suspicious money.
It is also important to note that this is not the first time that CBEX has been flagged as suspicious by financial authorities.
In April 2024, the Hong Kong Securities and Futures Commission declared CBEX as a suspicious trading platform. This is due to the fact that many local investors complain about their struggle to withdraw crypto assets from the platform.
“The entity is suspected of deceiving investors with fake withdrawal records,” SFC said.
Further investigation by SFC revealed that trading platforms claim to have digital asset licenses on their websites, but in Canada they do not have associated digital asset licenses at their headquarters or Japanese branches.
How do CBEX groups work?
CBEX promotes its position as a cryptocurrency trading platform that uses artificial intelligence to generate profits for investors. In the second half of 2024, it gained popularity as traders promised a 100% return within just one month of depositing their funds. This has led investors to believe their funds will double in just 30 days.
The platform reportedly accepts only US dollar deposits. The sophisticated website interface is also similar to the established crypto exchange interface, making it seem legal. With a referral-based bonus system, current users want to invite friends, family and colleagues to sign up for the platform, attracting more users.
“With CBEX, you don’t have to worry about volatility. Join us today and let AI handle your transactions,” he wrote CBEX on an X account with over 3,000 followers.
By February 2025, forum users like Nairaland began to express concern about how similar CBEX models were to other historic Ponzi schemes, such as MMM, which collapsed in 2016.
By April, the platform’s operations had undergone intense scrutiny following reports of withdrawal halt. This caused panic among traders who found their funds to be trapped in the system.
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