Thousands of Nigerians are grappling with massive losses following the sudden collapse of CBEX, a digital asset trading platform accused of defrauding investors of over ₦1.3 trillion.

Launched with mouthwatering promises of 100% Return on Investment (ROI) within 30 days, CBEX attracted a large number of investors, only to vanish overnight, leaving users’ wallets completely drained and withdrawals frozen.

Telegram Channels Locked, Withdrawals Blocked

The collapse became evident when users discovered they could no longer access their funds. CBEX shut down its Telegram channels, blocked all withdrawal options, and introduced a suspicious “verification process” that demanded $100 to $200 from users hoping to recover their funds.

Fraud Allegations and Fake Trading Interface

Though CBEX claimed to be a secure and transparent crypto trading platform, investigations have revealed a different story. Experts now describe the platform as one of Nigeria’s biggest digital Ponzi schemes.

Key findings include:

• Fake trading dashboards: What investors saw were artificially generated profits and nonexistent trades, powered by manipulated AI figures.
• Deceptive fund movements: Deposits were routed to a TRX wallet, immediately converted to USDT and ETH, with no trace left in users’ accounts.
• Impersonation of legitimate platforms: The CBEX website mimicked reputable exchanges like ByBit to create a false sense of trust.
• Unlicensed operations: CBEX operated without any registration or approval from the Securities and Exchange Commission (SEC) of Nigeria.

Ponzi Scheme Disguised as Digital Trading

In truth, CBEX ran a classic Ponzi model—using deposits from new investors to pay older ones, creating an illusion of legitimate trading. When growth became unsustainable, the platform crashed, and a final scheme was introduced: the so-called verification fee, allegedly to unlock trapped funds, but actually another ploy to milk more money from desperate victims.

Analysts Sound the Alarm

Cryptocurrency analysts have warned that the “verification phase” is nothing more than a last-ditch scam tactic designed to squeeze remaining funds from already defrauded users.

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“It’s a clear case of robbing Peter to pay Paul,” one expert said. “Only a few might be paid to keep the illusion going while the majority lose everything.”

Final Word: Stay Vigilant

CBEX is a stark reminder of the dangers of unregulated online investment platforms. With new laws like the ISA 2025 empowering the SEC to clamp down on such schemes, Nigerians are urged to always verify the legitimacy of trading platforms before investing.

Stay connected to Naija Blog Daily for continuous updates on the CBEX fallout, advice on safe investing, and how to avoid falling victim to the next digital scam.

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