Can Nigerians still withdraw their money on CBEX? — What you need to know

Nigerians have taken to social media to lament losses after digital asset platform CBEX reportedly vanished with over N1.3 trillion.

The platform crashed on Monday April 14, 2025, erasing all funds from investors’ digital wallets without prior warning.

CBEX then locked its Telegram channels and suspended withdrawals, offering only conditional “verifications” for new payouts.

It promised $2,000 for $200 verification and $1,000 for $100 verification to select investors.

Crypto analyst Taiwo Owolabi, during an X Space by Trending X, said funds were traced to a TRX wallet address.

He explained that $847 million had already been siphoned in USDT, with the figure expected to rise.

Owolabi noted CBEX was never licensed, describing its structure as a cleverly disguised Ponzi scheme.

He accused the platform of copying the design of ByBit, a trusted trading site, to mislead investors.

“The website is weak on purpose to justify a future excuse of being hacked,” Owolabi said.

He explained that all deposits went to a TRX wallet and were instantly converted into USDT and Ethereum.

What appeared as trading balances on investors’ dashboards were mere numbers with no real backing.

“The AI trading, daily rewards, and profits are all fake,” he stressed.

Withdrawals, he said, were only possible using funds from new victims.

The cycle, according to him, was a ‘rob Peter to pay Paul’ method powered by users’ greed and referrals.

Owolabi stated that CBEX used greed as a weapon to keep investors hooked and recruiting others.

He said the scheme mirrors past Ponzi models that looted Nigerians of their life savings.

CBEX claimed to offer a 100% Return On Investment within 30 days, attracting thousands with fake credibility.

It displayed fabricated withdrawal records to lure and keep unsuspecting investors engaged.

Owolabi warned that the money is gone and only those who pay verification fees may get partial returns.

He said even those returns come from newer victims’ funds, not from real profits.

Amid rising panic, Nigeria’s Securities and Exchange Commission (SEC) issued a warning.

It reminded the public that unregistered digital trading operations are now illegal under the new ISA 2025.

The SEC said it is now a criminal offence to run or advertise forex or crypto platforms without registration.

According to SEC, the new law empowers it to regulate virtual and digital asset exchanges.

Dr. Emomotimi Agama, SEC’s Director-General, called the law a major reform for Nigeria’s capital market.

He said ISA 2025 will enhance investor protection, especially in digital and previously unregulated markets.

Agama assured Nigerians that innovation is welcome but must operate within a safe regulatory framework.

“We support innovation, but it must protect investors and market integrity,” Agama said.

The SEC encouraged businesses to consult its DRM Department before launching financial platforms.

CBEX’s collapse has once again exposed the dangers of unregulated digital trading in Nigeria.

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