CBEX Scam: Are Nigerians Ever Getting Their Money Back?

Many Nigerians are reeling in shock as CBEX, a popular digital trading platform, has suddenly crashed—allegedly wiping out over N1.3 trillion from users’ accounts. The platform went offline on Monday, and soon after, users discovered that all the money in their wallets had vanished.

To make matters worse, CBEX locked its Telegram channels and froze withdrawals. It later told users they could only recover part of their money if they paid extra fees—$200 to get $2,000 or $100 to get $1,000. Many saw this as another trick.

During a live discussion on X (formerly Twitter), hosted by Trending X, crypto expert Taiwo Owolabi explained how CBEX pulled off the scam. He said the stolen funds—about $847 million so far—were traced to a crypto address on the TRX blockchain. According to him, the total amount could be even higher.

Owolabi also revealed that CBEX was never licensed. The people behind it built a fake website designed to look like a trusted trading platform, ByBit. “They made it look like a legit site, but it was weak on purpose. That way, if things went wrong, they could blame a security hack,” he said.

Here’s how the scam worked: whenever someone sent money to CBEX, it was quickly moved from a TRX account, converted into USDT, and later into Ethereum. Even though users could log into their accounts and see a balance, it was all fake. The trading activity? Also fake—just numbers moving on a screen.

Owolabi explained it further: “They’d let you withdraw money once in a while, but that money came from someone else who just invested. Because of greed or hope, people kept putting money back in, and the cycle continued. Basically, it was a Ponzi scheme.”

What is CBEX, really?

CBEX claimed to be a digital asset trading platform that promised investors a 100% return on their money within 30 days. It also claimed to offer a secure and transparent way to trade crypto assets. But now, it’s clear that it was all a setup to trick people.

The platform even showed fake withdrawal records to make users believe everything was fine, while many were actually struggling to get their money out.

Can victims still get their money back?

According to Owolabi, the chances are slim. Most of the money is already gone. CBEX is now asking users to pay “verification” fees if they want to make withdrawals—but even that seems like another scam. “It’s the same old ‘rob Peter to pay Paul’ strategy,” he said.

SEC Warns Against Unregistered Trading Platforms

As panic grows, the Securities and Exchange Commission (SEC) has stepped in with a warning. Under the new Investment and Securities Act (ISA) 2025, signed by President Bola Tinubu, it is now illegal for any company to offer online forex trading or related services without first registering with the SEC.

The SEC urged any business interested in digital or online trading to go through the proper channels and register. Otherwise, they risk facing serious penalties.

Dr. Emomotimi Agama, the SEC Director General, called the new law a major step forward. “The ISA 2025 gives us the power to better protect investors, especially in areas like digital assets and online trading,” he said.

While the SEC says it supports innovation, it made it clear that all trading platforms must operate within the rules to protect people’s money and build trust in the market.