KEY POINTS

• CBEX, a digital trading platform, collapsed after allegedly defrauding Nigerian investors of over N1.3 trillion, with funds traced to a single cryptocurrency wallet.
• The SEC confirmed CBEX as a Ponzi scheme, citing its unregistered status and deceptive tactics, including fake balances and predatory withdrawal fees.
• New regulations under the ISA 2025 now require digital asset platforms to register with the SEC, aiming to curb fraud and protect investors.

Nigerian investors are reeling from massive financial losses after digital asset trading platform CBEX abruptly shut down, allegedly taking over N1.3 trillion ($847 million) in investor funds.

The platform, which promised a 100% return on investment within 30 days, has been exposed as a potential Ponzi scheme by the Securities and Exchange Commission (SEC).

Channelstv reports that CBEX marketed itself as a secure and transparent digital trading environment, but users began reporting difficulties withdrawing funds in recent weeks. Investigations reveal that the platform displayed falsified transaction records while systematically locking investors out of their accounts.

“By virtue of the ISA 2025, 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,” the SEC stated in a recent advisory.

How CBEX operated its alleged Scam

According to cryptocurrency analyst Taiwo Owolabi, CBEX used deceptive tactics to lure investors. The platform mimicked legitimate exchanges like ByBit but operated a fundamentally fraudulent system.

“When you make payments, you pay them into a TRX account, and then they immediately move the funds. What you see in your account are just numbers—there is no real money,” Owolabi explained during an X Space discussion.

The collapse of CBEX comes as Nigeria tightens regulations on digital asset trading. The newly enacted Investment and Securities Act (ISA) 2025 empowers the SEC to oversee cryptocurrency exchanges and online forex platforms.

SEC Director-General Dr. Emomotimi Agama described the law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”

Despite these measures, thousands of Nigerians have fallen victim to CBEX’s scheme. Blockchain data shows that stolen funds were consolidated into a single TRX wallet