CBEX, a digital trading platform, allegedly swindled over N1.3 trillion from Nigerian investors after it locked withdrawal options and imposed verification fees. With funds transferred to an unknown TRX address, experts suggest it may be a Ponzi scheme. The Nigerian SEC has warned against unregistered platforms under new laws.
A major digital asset trading platform, CBEX, has left investors in shock as reports indicate that over N1.3 trillion may have been swept from users’ accounts. The platform, which initially promised significant returns, faced a major crash that locked its users out of their funds. Investors are now unable to access their money, while the platform has locked its Telegram channels and imposed hefty verification fees, offering minimal compensation in return.
Cryptocurrency expert Taiwo Owolabi revealed during a live discussion that data shows the funds were funneled into a specific TRX address, with approximately $847 million in USDT believed to be part of the funds siphoned. Owolabi criticized the platform’s operations, highlighting that CBEX's design mirrored tactics commonly seen in Ponzi schemes, where funds were continually cycled to create the illusion of profit for investors.
The Nigerian Securities and Exchange Commission (SEC) has weighed in on the matter, stating that any platform operating without prior registration is violating the law. The newly passed ISA 2025 now empowers the SEC to regulate platforms offering digital asset trading. While the platform remains unlicensed, the SEC has made it clear that this is an example of why investors should be cautious about where they place their funds.
