Nigerians are reeling from what is being described as one of the biggest digital scams in the country’s history. CBEX, an unlicensed digital asset trading platform, has allegedly defrauded investors of over $809 million (₦1.337 trillion), locking users out of their accounts and leaving them with nothing but empty dashboards and broken promises.
The platform, which claimed to double users’ investments monthly, is now being exposed as a sophisticated Ponzi scheme. Across social media, devastated victims are sharing their stories.
“I was invited to CBEX all in the name of making enough money, only to wake up today and discover that all my $4,000 is gone,” one user tearfully shared in a video posted to X (formerly Twitter).
In a desperate act of frustration, an angry customer broke into a CBEX office in Ibadan, southwest Nigeria, and carted away chairs, air conditioning units, and a solar panel.
Meanwhile, other users remain in denial, holding on to CBEX’s claims that the issue stemmed from a security breach. On Telegram, the company responded to complaints by saying it was the result of a hack and promised to resolve the issue. Despite this, CBEX locked its Telegram channels and suspended withdrawals. It then introduced suspicious “verification” offers, promising $2,000 or $1,000 returns in exchange for $200 or $100 payments respectively.
CBEX’s operation bears a striking resemblance to previous Ponzi schemes in Nigeria, particularly the infamous MMM, which promised 30% returns in 30 days before collapsing and wiping out billions in user funds.
Security analysts have since discovered that CBEX was never licensed and was designed to mimic legitimate platforms like ByBit. The platform’s website was intentionally built with vulnerabilities, misleading users into believing their funds were lost to hackers.
Blockchain tracing reveals that funds sent to CBEX’s TRX wallet were quickly converted to USDT and then to Ethereum, eventually vanishing into anonymous crypto addresses. Over $800 million in USDT has been tracked as stolen.
“There is no real money in the users’ accounts. Just numbers. Every trade made by the so-called AI was fake. When it was time to cash out, they simply paid with someone else’s money,” a cybersecurity expert said.
In response to the incident, Nigeria’s Securities and Exchange Commission (SEC) has reiterated its stance on illegal forex and digital trading platforms. Citing the newly signed Investment and Securities Act (ISA) 2025, the SEC declared:
“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.”
Dr. Emomotimi Agama, the SEC’s Director General, hailed the Act as a “landmark step toward making Nigeria’s capital market more inclusive, robust, and in line with best practices around the world.”
“Any business entity with plans of operating in these sectors is advised to visit the commission for proper registration to avoid sanctions,” the SEC advised.
As investigations continue, thousands of Nigerian investors are left with no clear path to recovering their money, while authorities scramble to trace the perpetrators behind the CBEX scheme.