A Nation Hoodwinked Again: The Collapse of CBEX and the Price of Greed [OPINION]

 

In what has become a grim déjà vu for many Nigerians, the collapse of CBEX — a digital asset trading platform that lured investors with promises of fantastical returns — has sent shockwaves through the nation, wiping out over ₦1.3 trillion in funds and leaving thousands reeling.

The platform, which reportedly vanished over the weekend, had assured investors of a 100 per cent return within 30 days, citing sophisticated AI-driven trading as the secret sauce behind its success. But by Monday, panic set in. Users opened their wallets to find balances slashed to zero. The official Telegram channels — once buzzing with hype, success stories, and pseudo-market updates — were locked. Then came the insult after injury: a new “verification” process that demanded an extra $100–$200 from already drained users in a desperate bid to unlock their inaccessible funds.

According to security analysts tracking blockchain activity, approximately $822.8 million worth of digital assets was siphoned off into a private Ethereum wallet, beyond the reach of investors or any current regulatory remedy. As the financial dust settles, so too does a wave of outrage, sorrow, and bitter self-reflection among Nigerians who had hoped CBEX would be their ticket to prosperity.

A Familiar Pattern, a New Platform

The CBEX debacle has opened old wounds. For many, it’s an all-too-familiar story that harks back to the infamous MMM Ponzi scheme that devastated countless Nigerian households nearly a decade ago. Despite public outcry and increased financial literacy campaigns since then, the allure of high-yield returns continues to seduce even the most cautious of investors.

“This CBEX thing was not even popular like that,” lamented X (formerly Twitter) user @lollypeezle. “You guys were making money in silence, hiding updates, and now you want us to pity you. Ko le werk. Cry.”

Others were less amused. “After the MMM shege, Nigerians still invest in Ponzi,” tweeted @MissCazorla1, who chided what she termed as both financial and political “foolishness.” @emma75039, a former MMM victim, added bitterly, “Don’t you people ever think? Now CBEX has done you people dirty again.”

A Tech-Driven Mirage

CBEX was part of a growing class of platforms exploiting the popularity of crypto and digital finance, blending tech jargon with marketing razzle-dazzle to build trust. Its claim of “AI-powered trading” offered a futuristic veneer to what now appears to be an old-school scam. For many investors, the lack of regulatory oversight was either overlooked or deliberately ignored — a gamble that has now backfired spectacularly.

The Securities and Exchange Commission (SEC) of Nigeria has since issued a strong advisory, warning citizens against unregistered investment platforms. With the enactment of the Investments and Securities Act 2025, operators of digital asset exchanges and online forex trading platforms are now mandated to register or face penalties.

“Any investment scheme that defies the principles of wealth creation is a scam,” wrote financial analyst @Fx_General_ on X. “Y’all will be alright.”

Lessons Unlearned

What remains especially troubling is the speed and scale at which CBEX accumulated trust and funds, despite relatively low mainstream visibility. The platform’s success in keeping its operations semi-private through tight-knit Telegram groups and discreet word-of-mouth marketing may have added to its perceived exclusivity, creating an illusion of legitimacy and success among insiders.

Now, as social media floods with accounts of life savings lost and dreams shattered, the larger conversation around Nigeria’s financial vulnerability resurfaces. Why do so many, time and time again, fall prey to schemes that promise too much, too fast?

For now, CBEX joins the ranks of failed platforms that have capitalized on a mix of desperation, digital illiteracy, and regulatory loopholes. And while the internet may have moved on to the next trending topic by next week, the financial and emotional scars left behind will take far longer to fade.

Looking Forward

In the aftermath, the spotlight turns to financial literacy, regulation enforcement, and public accountability. It also begs the question: Will this be the last time? Or just another chapter in a never-ending cycle?

For the victims of CBEX, the answer may come too late. But for the rest of Nigeria, the hope remains that this latest heartbreak becomes a cautionary tale — not just another headline.