Can Nigerians Still Withdraw Their Money On CBEX? — What You Need To Know

 

A wave of panic has swept across Nigeria’s digital investment community following the sudden collapse of CBEX, a controversial digital asset trading platform that lured thousands with promises of astronomical returns. The crash, which unfolded on Monday, has reportedly left investors reeling from losses amounting to over ₦1.3 trillion, sparking widespread outrage and fresh calls for stricter oversight in the country’s cryptocurrency space.

CBEX, which operated under the guise of a sophisticated trading platform, shut down operations without warning—its users awakening to discover their wallets had been emptied. Investors attempting to log into the platform were met with locked accounts, disabled Telegram groups, and vague promises of recovery—if they paid additional “verification” fees.

In the aftermath of the implosion, analysis from a crypto expert and security analyst, Taiwo Owolabi, revealed that $847 million in USDT (Tether) had been traced to a TRX address believed to be part of the scam's laundering network. The total stolen amount is projected to increase as investigations deepen.

“This was a calculated scheme from the start,” said Owolabi during an X Space session hosted by ‘Trending X’. “They used a dummy website that mimicked ByBit to create legitimacy. The trading was simulated—users weren’t actually making money; it was just numbers on a screen.”

According to Owolabi, the scheme ran on a typical Ponzi model. Early withdrawals were funded with deposits from new users, giving an illusion of profitability. Users were encouraged to reinvest, and the cycle continued until the inevitable crash.

CBEX, which positioned itself as a platform offering 100% returns in just 30 days, falsely claimed to use AI-powered trading systems to maximize profit. In reality, the funds were funneled through TRX wallets, converted to USDT, and eventually washed into Ethereum—well beyond the reach of most investors.

As more users took to platforms like X (formerly Twitter) and WhatsApp to voice their grievances, many shared stories of life savings being wiped out, loans taken to invest, and entire communities brought into the scheme through referral systems.

To further exploit the situation, the platform’s operators offered a bizarre “verification” plan—claiming users could access a limited withdrawal of $2,000 by paying a $200 fee, or $1,000 for a $100 fee. Analysts warn this is simply a last-ditch effort to extract more money from already devastated victims.

The Securities and Exchange Commission (SEC) has since weighed in, issuing a strong warning to the public about engaging with unregistered digital asset platforms. In light of the Investments and Securities Act (ISA) 2025, recently signed into law by President Bola Tinubu, the commission now holds expanded powers to regulate entities offering digital financial services.

“Operating an online forex or digital asset trading platform without SEC registration is now a criminal offence,” the commission said in an official statement. “The public is advised to verify any investment platform with the HOD DRM Department of the Commission before committing funds.”

Dr. Emomotimi Agama, Director General of the SEC, hailed the new ISA as a crucial step toward strengthening Nigeria’s financial ecosystem and shielding it from bad actors.

“We’re entering a new era of accountability,” Agama said. “The digital market is evolving rapidly, and while innovation is welcome, it must happen within a framework that prioritizes investor protection and transparency.”

As Nigerians reckon with yet another high-profile crypto scam, many are calling for urgent public awareness campaigns and tighter collaboration between regulators and law enforcement agencies to track down the masterminds behind CBEX.

The CBEX debacle joins a long list of Ponzi-style crypto platforms that have preyed on a financially vulnerable population—promising wealth but leaving devastation in their wake. Whether justice will be served, and any funds recovered, remains uncertain.

In the meantime, experts urge the public to approach digital investments with caution, avoid “get-rich-quick” schemes, and verify all platforms through legitimate regulatory channels.