Nigerians are reeling from massive losses after the digital asset trading platform CBEX reportedly collapsed, wiping out over ₦1.3 trillion from investor wallets in what is now being described as a large-scale Ponzi-style scam.
The crash occurred on Monday, when users noticed that all funds in their CBEX wallets had vanished. The platform subsequently locked its Telegram channels, postponed withdrawals, and introduced a suspicious “verification” scheme—offering a lifeline of $2,000 for a $200 fee or $1,000 for $100, sparking further outrage.
According to cryptocurrency expert Taiwo Owolabi, data analysis revealed that at least $847 million in USDT was funneled to a TRX wallet (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf) and then laundered through ETH conversions, making the funds nearly impossible to trace or recover.
“All the AI trading and profits were fake,” Owolabi said during an X (Twitter) Space session. “They used new investments to pay earlier users—typical Ponzi model. When you log in, you’re only seeing numbers, not real money.”
What is CBEX?
CBEX claimed to be a digital asset trading platform offering investors 100% ROI in 30 days, mimicking legitimate platforms like ByBit. However, it has now been exposed as a fraudulent operation with fake trading activity, misleading payout histories, and no licensing.
Can Investors Recover Funds?
Experts say it’s highly unlikely. Owolabi notes that unless victims pay more money under the guise of “verification,” there’s little hope of recovery—a tactic often used to prolong and disguise Ponzi schemes. The so-called verification is believed to be another trap to extract more funds before the platform vanishes completely.
CBEX’s crash now joins a long list of digital scams that have targeted Nigerian investors, exploiting poor regulation, digital illiteracy, and desperation for quick wealth. Financial experts are urging the public to avoid platforms with guaranteed high returns, lack of regulatory oversight, and non-transparent operations.
