Crypto Nightmare: CBEX Collapse Leaves Trail of Pain in Oyo, 27 Hospitalised Amid ₦1.3 Trillion Scam

 

IBADAN, Nigeria — Chaos gripped parts of Oyo State on Monday as a digital asset trading platform known as CBEX suddenly went dark, wiping out over ₦1.3 trillion in investor funds and sending shockwaves across the state. What many believed was a promising cryptocurrency investment has now been revealed as a sophisticated Ponzi scheme, leaving scores of residents devastated, with at least 27 individuals reportedly hospitalised in Ibadan alone.

The crash of the unregistered CBEX platform has sparked outrage and confusion, with thousands taking to social media to share their heartbreak and disbelief. According to multiple accounts, investors woke up to find their CBEX accounts emptied, their Telegram group chats locked, and withdrawals suspended. Instead of refunds or explanations, the platform offered users a dubious "verification" option, asking for $200 from those who invested $2,000 and $100 from those with deposits under $1,000.

One of the victims, Sherif Latifu, recounted the chaos unfolding in Ibadan. “More than 27 people that I personally know are in hospitals now. Many of us have lost everything. This is a serious emergency, and we’re begging Governor Seyi Makinde to help subsidise hospital bills for victims,” Latifu appealed in an emotional plea.

The crisis took a graver turn when angry residents of Ibadan stormed the now-deserted CBEX office at Oke Ado, demanding answers and accountability. Eyewitnesses described a scene of confusion and desperation as victims, many of them elderly or small-scale business owners, tried to access a building that had become symbolic of their financial ruin.

Experts have since weighed in on the scandal. Taiwo Owolabi, a cryptocurrency analyst and cybersecurity expert, described the CBEX operation as an elaborate fraud with technical manipulations designed to mimic real trading activity. “There was no real investment going on. The site was a front. The AI trading, the charts—everything was fake. Your TRX payments were instantly converted into USDT, then ETH, and your account showed you numbers, not actual funds,” Owolabi explained during a discussion on X Spaces.

He further estimated that the platform stole at least $847 million in USDT, adding that the figure is likely to rise as more reports come in.

The Securities and Exchange Commission (SEC) of Nigeria had earlier raised the alarm over unlicensed online trading platforms. In a recent advisory, the commission warned that the new Investments and Securities Act (ISA 2025), signed into law by President Bola Tinubu, criminalises operations of forex and crypto-related trading platforms that are not duly registered with the regulatory body.

“It is now an offense in Nigeria for any business entity to operate online forex or asset trading services without the Commission’s approval,” the SEC reiterated. “Entities must consult the DRM Department for guidelines on proper registration to avoid sanctions.”

CBEX, however, seemed to have ignored all regulatory red flags. With promises of 100% return on investment, the platform drew in thousands of hopeful Nigerians, many of whom now face financial ruin. Critics are now questioning how such a large-scale operation escaped regulatory scrutiny until it was too late.

The incident has once again spotlighted the vulnerability of Nigerian investors to digital fraud, especially in an economy where many are seeking alternative sources of income. It also highlights the urgent need for investor education and stronger enforcement by financial authorities.

As of now, no arrests have been made, and CBEX founders remain unreachable. Meanwhile, the victims are left with empty wallets, broken trust, and in some cases, medical bills—calling into question how far Nigeria must go to safeguard its citizens from digital predators masquerading as financial messiahs.