CBEX crypto collapse sparks social media outrage amidst ponzi scheme allegations

The Nigerians looted the office of the digital active ingredient trading platform, CBEX after hundreds of users have seen their account balances drop to zero after the collapse of the exchange.

According to a report By BBC Pidgin, investors would not have withdrawn their funds after the exchange announced that he would suspend withdrawals on April 9. The platform cited a “security violation” and promised users a complete performance of damages by April 15. However, many traders have seen the balances fall to zero after the suspension.

Videos circulating on social media platforms have shown merchants in tears in the open that they lost all their funds after having placed on their CBEX accounts. Many of them claimed to have invested their savings in the platform, to remain devastated once all their money has apparently disappeared overnight.

“The guys, they said that I should check my balance now. Zero balances, there is nothing there. To think that I just did this thing two weeks ago,” shouted a Nigerian Trader in a video, which would have lost 8.7 million nairas on the platform or equal to $ 5,432.

The exchange would have closed all their telegram groups and destroyed user sales. Consequently, a group of angry Nigerian traders stormed the CBEX office in the Ibadan Oke Ado region and began to loot objects.

In a video Driving on social networks, the angry crowd has been seen to take office articles, including air conditioners, glass window fans and other valuables.

In light of the incident, the Nigerian Commission of securities warned citizens of risks surrounding unregulated digital investment platforms and potential Ponzi diagrams.

Although he did not mention CBEX by name, the director of the Sec, Emomotimi Agama, alluded to the controversy around “a particular platform” and said that he was not registered with the SEC. Therefore, it operated illegally in the region.

In addition, he explained that the SEC now has competence to investigate and close digital trading platforms without license, as well as influencers and celebrities who approve of suspicious money programs.

It is also important to note that this is not the first time that the CBEX has been reported as a suspect by the financial authorities.

In April 2024, Hong Kong Securities and Futures Commission declared CBEX as a suspicious trading platform. This is due to the fact that many local investors complained of having difficulty withdrawing the cryptographic assets from the platform.

“The entity is suspected of having deceived investors with false withdrawal files,” said the SFC.

A more in-depth survey of the SFC revealed that if the trading platform claimed to have a license of digital assets on its website, it does not hold any relevant digital asset license in Canada where it claims to have its headquarters or in its branch in Japan.

How does the CBEX group work?

CBEX promotes as a cryptocurrency trading platform that uses artificial intelligence To generate profits for investors. He gained popularity at the end of 2024, because he promised traders the yields to 100% in just a month after the deposit of funds. This led investors to believe that their funds would double in just 30 days.

The platform would only accept deposits in US dollars. His elegant website interface also looked like those of established cryptography exchanges, which made him seem legitimate. Its bonus system based on a reference has made current users wishing to invite their friends, families and colleagues to also register on the platform, by attracting more users.

“With Cbex, you never have to worry about volatility. Join us today and let AI manage your trading for you,” wrote Cbex on their x accountwhich currently has more than 3,000 subscribers.

In February 2025, users on forums like Nairand started to express concerns about how the similar CBEX model was similar to other historic Ponzi patterns like MMM, which collapsed in 2016.

By April, the operations of the platform have been examined intense as a result of withdrawal suspension reports, which aroused panic among the traders who discovered that their funds were locked in the system.