BREAKING: Can Nigerians Still Withdraw Their Money on CBEX? Expert Shares Key Things You Need to Know
Nigerians have taken to social media to lament the collapse of CBEX, a digital asset trading platform that reportedly wiped over N1.3 trillion from investors’ accounts.
The platform crashed on April 14, causing funds in user wallets to vanish.
According to PUNCH: CBEX subsequently locked its Telegram channels, postponed withdrawals, and offered investors a verification option—$2,000 for $200 verification and $1,000 for $100 verification—raising suspicions about its operations.
Experts uncover deceptive practices
Cryptocurrency expert Taiwo Owolabi, analysing the crash on X space, revealed that stolen funds, amounting to $847 million in USDT, had been transferred to a TRX address and were likely to increase.
Owolabi stressed that CBEX was not a licensed platform, noting its website had been designed to mimic legitimate trading sites like ByBit.
He explained that CBEX displayed fictitious trading activities to lure investors, with its AI trading entirely fabricated. Withdrawals were reportedly funded using new investors’ deposits, operating similarly to a Ponzi scheme.
Can Nigerians still withdraw their money?
Owolabi, while explaining on the X space, said that in reality, all the funds are gone. Unless people decide to pay the $100 and $200 verification fees, that way, they will settle some people and leave others to languish.
He also maintained that it was the same way popular Ponzi schemes that have duped Nigerians in the past behaved, adding, “It is a rob Peter to pay Paul’ deal.
SEC warns against unregulated forex trading
Following the CBEX collapse, the Securities and Exchange Commission (SEC) reaffirmed its stance on unregistered trading platforms.
In accordance with the recently enacted ISA 2025, the SEC clarified that operating an online foreign exchange trading platform without prior registration was now an offence in Nigeria.
SEC Director General Dr Emomotimi Agama described the law as a crucial step in strengthening Nigeria’s capital market and ensuring investor protection. The commission urged businesses intending to operate in the digital trading space to seek proper registration to avoid sanctions.
CBEX collapses, traps trillions of naira
Legit.ng earlier reported the CBEX platform has reportedly collapsed, leaving investors with substantial amounts of Naira trapped.
This incident follows a recent request by the platform for additional deposits from its users, raising concerns about the platform’s legitimacy and its operations within the country. Legit.ng checks reveal that the platform has changed its domain name severally between January 2024 and February 1, 2025.
