KEY POINTS
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Over 1,000 investors stormed CBEX’s Lagos office over lost funds.
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The SEC has warned that unregistered platforms are illegal in Nigeria.
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Many victims used loans to invest in CBEX, losing large sums.
On Wednesday, irate investors stormed the Crypto Bridge Exchange Smart-Treasures (CBEX) office in Lagos.
The investors, who had lost money on the platform, broke into the premises in search of officials. CBEX had been promising users 100% returns on their investments but had crashed.
The office, located in the Egbeda-Idimu area of Lagos, was deserted when investors arrived. Armed police arrived later to secure the area and maintain order.
Investors voice frustration over huge losses
According to Vanguard, one investor, Mr. Segun, described his confusion after joining the platform. He invested $1,700 (about N1.7 million) after hearing of high returns.
Segun explained that CBEX had displayed certificates and operated seminars, creating trust. Other investors also shared their frustrations, stating they lost tens of thousands of dollars.
Some reported financial ruin, with a victim even dying from the shock. Many used loans to invest, only to be left with nothing.
Legal and regulatory responses to CBEX collapse
The Securities and Exchange Commission (SEC) had warned that unregistered digital asset exchanges were illegal in Nigeria.
The SEC reiterated that any entity not registered with the commission could face legal consequences. While CBEX had promised transparency, the recent crash exposed a Ponzi scheme.
The Securities and Exchange Commission has since emphasised the importance of registration to protect investors.
