Chaos Erupts as CBEX Collapses: Nigerian Traders Loot Office After Losing Millions

Nigerians have stormed and looted the office of the now-defunct crypto trading platform, CBEX, after hundreds of users watched helplessly as their account balances plummeted to zero overnight.

Reports hit the streets that investors were left in the lurch after CBEX slammed the brakes on withdrawals on April 9, claiming a "security breach" and promising a full refund by April 15. But as the days ticked by, the promised refunds never materialized, and traders' accounts were wiped clean.

Social media is buzzing with videos of devastated traders, tears streaming down their faces as they realized their life savings had vanished into thin air after depositing them into CBEX. The emotional wreckage is palpable, with many claiming they poured everything they had into the platform, only to be left shattered.

Tears across Nigeria as CBEX crashes.
For the past days, countless Nigerians have expressed heartbreak over their inability to withdraw funds from the platform.
CBEX has left many back at square one — a painful reminder that "quick money" schemes often come at a heavy cost.
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"Guys, they said I should check my balance now. Zero balance, there's nothing there. To think I just did this thing two weeks ago," one Nigerian trader wailed in a video, revealing he lost a staggering 8.7 million naira, equivalent to $5,432, on the platform.

As the dust settled, it became clear that CBEX had pulled the plug on all their Telegram groups and wiped out users' balances. The fallout was swift and furious, with a mob of enraged Nigerian traders descending on the CBEX office in Ibadan's Oke Ado area, looting everything in sight.

Videos circulating online show the angry crowd making off with air conditioners, glass windows, fans, and anything else they could get their hands on, a testament to the raw fury and desperation felt by those who lost everything.

In the wake of this disaster, the Nigerian Securities and Exchange Commission stepped up to the mic, warning citizens about the dangers lurking in unregulated digital investment platforms and the potential for Ponzi schemes.

Without naming names, SEC Director Emomotimi Agama hinted at the "particular platform" causing all the chaos, making it clear that it was operating illegally without SEC registration. He also dropped the bombshell that the SEC now has the power to investigate and shut down unlicensed digital trading platforms, as well as go after influencers and celebs who shill sketchy money-making schemes.

And get this, this isn't CBEX's first rodeo with the authorities. Back in April 2024, the Hong Kong Securities and Futures Commission called them out as a suspicious trading platform after a flood of complaints from local investors struggling to withdraw their crypto assets.

"The entity is suspected to have deceived investors with fake withdrawal records," the SFC stated, pulling no punches.

Further digging by the SFC revealed that while CBEX strutted around claiming to hold a digital asset license, they were flying without one in Canada, where they claim to be headquartered, and in their Japan branch.

How does the CBEX Group work?

CBEX strutted onto the scene, promising the moon and stars as a crypto trading platform that used AI to rake in profits for investors. They exploded in popularity in late 2024, dangling the carrot of 100% returns within a month of depositing funds, making investors think their money would double in just 30 days.

The platform only took deposits in U.S. dollars, and their slick website looked legit enough to fool even the savviest of traders. Their referral bonus system had current users frothing at the mouth to bring in their friends, family, and anyone else who'd listen, sucking in more and more users.

"With CBEX, you never have to worry about volatility. Join us today and let the AI handle your trading for you," CBEX boasted on their X account, which now boasts over 3,000 followers.

But by February 2025, the whispers started. Users on forums like Nairaland were getting antsy, pointing out the eerie similarities between CBEX's model and notorious Ponzi schemes like MMM, which imploded back in 2016.

By April, the platform was under a microscope as reports of withdrawal suspensions sent shockwaves through the trading community, leaving investors in a panic as they realized their funds were trapped in the system.