Can Nigerians Still Withdraw Their Money on CBEX? Expert Shares Key Things You Need to Know
- Nigerians have been left reeling after the sudden collapse of CBEX, a digital trading platform that reportedly wiped over N1.3 trillion from investors' accounts
- Cryptocurrency experts have uncovered fraudulent tactics behind the crash, describing CBEX’s operations as a Ponzi scheme disguised as an investment platform
- In response, the Securities and Exchange Commission has warned against unregistered trading platforms, reinforcing regulations under the newly enacted ISA 2025
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Nigerians have taken to social media to lament the collapse of CBEX, a digital asset trading platform that reportedly wiped over N1.3 trillion from investors’ accounts.
The platform crashed on April 14, causing funds in user wallets to vanish.
Source: Getty Images
According to PUNCH: CBEX subsequently locked its Telegram channels, postponed withdrawals, and offered investors a verification option—$2,000 for $200 verification and $1,000 for $100 verification—raising suspicions about its operations.
Experts uncover deceptive practices
Cryptocurrency expert Taiwo Owolabi, analysing the crash on X space, revealed that stolen funds, amounting to $847 million in USDT, had been transferred to a TRX address and were likely to increase.
Owolabi stressed that CBEX was not a licensed platform, noting its website had been designed to mimic legitimate trading sites like ByBit.
He explained that CBEX displayed fictitious trading activities to lure investors, with its AI trading entirely fabricated. Withdrawals were reportedly funded using new investors' deposits, operating similarly to a Ponzi scheme.
Can Nigerians still withdraw their money?
Owolabi, while explaining on the X space, said that in reality, all the funds are gone. Unless people decide to pay the $100 and $200 verification fees, that way, they will settle some people and leave others to languish.
He also maintained that it was the same way popular Ponzi schemes that have duped Nigerians in the past behaved, adding, “It is a rob Peter to pay Paul’ deal.
SEC warns against unregulated forex trading
Following the CBEX collapse, the Securities and Exchange Commission (SEC) reaffirmed its stance on unregistered trading platforms.
In accordance with the recently enacted ISA 2025, the SEC clarified that operating an online foreign exchange trading platform without prior registration was now an offence in Nigeria.
SEC Director General Dr Emomotimi Agama described the law as a crucial step in strengthening Nigeria’s capital market and ensuring investor protection. The commission urged businesses intending to operate in the digital trading space to seek proper registration to avoid sanctions.
Don't Engage
Speaking with Legit.ng, AbdulFatai Khan, a financial expert, offered advice on how Nigerians can avoid Ponzi scheme in the future:
“Most people who actually participate in ponzy schemes are aware that it's a ponzy scheme but they believe it won't crash anytime soon. Just like those playing bet, they know their money could go, but still do with the hope that the monies will comeback in multiple folds
“Just few who were moved by greed suffer from ponzy schemes. Ponzy schemes have similar patterns, which include sudden recognition, higher returns and unstructured platforms. No historical records of successes in past years, no comparable data.
“Watch out for any business that solely carry out investments, if not registered with SEC and CBN, don't engage. Any investment that promises much higher returns than the comparable rates of other investment platforms, should be thoroughly investigated before putting in money.”
`Guaranteed returns, no license` - Investigator lists scam red flags
Abimpe Taiwo, an anti-money laundering and financial crime investigator, has warned investors to look out for signs of fraudulent investment schemes, as concerns rise over platforms like CBEX.
“Guaranteed high returns with no risk,” she told Legit.ng, is a major red flag, adding that all investments involve some risk
She also cautioned against pressure tactics, explaining that “legitimate investments don’t require snap decisions,” and warned that dealing with “unlicensed sellers or platforms” not registered with bodies "like the SEC, FINRA," or their local equivalent could indicate a potential scam.
The investigator noted that if an offer sounds unusually better than typical investments, it’s likely “too good to be true,” especially when paired with a lack of verifiable address, weak “online presence,” or withdrawal issues.
CBEX collapses, traps trillions of naira
Legit.ng earlier reported the CBEX platform has reportedly collapsed, leaving investors with substantial amounts of Naira trapped.
This incident follows a recent request by the platform for additional deposits from its users, raising concerns about the platform's legitimacy and its operations within the country. Legit.ng checks reveal that the platform has changed its domain name severally between January 2024 and February 1, 2025.
According to several sources, it went from cbex.cx to cbex8.com in July 2024, then to cbex9.com in September 2024, cbex-dex.com on November 13, 2024, and cbex39.com in February 2025.
Editorial assistant Ololade Olatimehin provided exclusive commentary from a financial crime investigator for this report.
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Source: Legit.ng
