CBEX, short for China Beijing Equity Exchange, promised Nigerians a quick path to riches through crypto trading. But like many things that sound too good to be true, it was! Now, investors are crying out, and the whole thing has turned into a massive drama. Let’s dive into the juicy details of how this went down.
- The Promise: CBEX lured users with promises of doubling their money in 30 days!
- No License: They operated in Nigeria without the necessary regulatory approvals.
- Red Flags: Withdrawal delays and suspicious “account verification” fees were major warning signs.
- Blockchain Trail: Investigators tracked funds to a single wallet, suggesting a well-planned scheme.
- SEC Warnings: The SEC warned against unregistered platforms MONTHS ago, but many ignored it.
CBEX’s Rise and Fall: A Nigerian Crypto Tragedy
What looked like a fast-track to financial freedom has now left many Nigerians in tears. CBEX, short for China Beijing Equity Exchange, was one of the trending names in Nigeria’s crypto community. But on Monday, April 14, the digital trading platform crashed, leaving many investors stranded and confused.
On Tuesday, April 15, 2025, the chaos had moved offline. In Ibadan, Oyo State, angry users stormed CBEX’s local office in Oke Ado, demanding answers. Some even looted the premises, a scene now circulating on social media.
The Alluring Promise of 100% Returns: A Red Flag
CBEX promised its users double returns in just 30 days! According to screenshots shared by affected investors, the platform claimed to generate profits through automated digital asset trading. Think about that for a second. Doubling your money in a month? That’s wild! Financial analysts warn that these types of returns are a huge red flag. It’s like waving a giant sign that says, “Scam Alert!”
The Securities and Exchange Commission (SEC) is always warning people about this. They say any platform offering unrealistic returns is probably operating outside the law. If it sounds too good to be true, run!
Operating in the Shadows: No License, No Trust
Despite its wide reach, CBEX wasn’t registered with Nigeria’s Securities and Exchange Commission (SEC). Big problem! The SEC made it clear earlier this year: it’s illegal to run online foreign exchange or crypto trading services in Nigeria without their permission.
CBEX’s CEO, Yahaya Ibrahim, claimed they were registered in Canada. But guess what? Tech blogs like Technext and CryptoTV Plus did some digging and couldn’t find any record of them in Canada or Nigeria. Ouch!
Trouble Brewing: The Warning Signs Investors Missed
The first signs of trouble popped up around April 9. Users started complaining about delayed withdrawals. Then, CBEX asked users to pay an extra $100 to $200 for “account verification” before they could get their money. That’s a classic Ponzi scheme move!
Crypto analyst Oladele Yusuf explained that asking for more money to release funds is a way to trap people. It’s like the platform is saying, “Just give us a little more, we promise you’ll get everything back… eventually.”
Following the Money: Blockchain Exposes the Truth
Tech investigators tracked the money using blockchain technology and found that funds were being moved to a specific Tron wallet. Taiwo Owolabi, a Nigerian crypto security expert, broke it down like this: the website was designed to trick people into thinking it was a security breach. When you made payments, you were actually paying into a TRX account. Then, the money was quickly moved, converted to USDT, and then to ETH.
Basically, the money wasn’t even sitting in your account! All those AI trades? Fake. The daily activities that made your money grow? All smoke and mirrors. When it was time to withdraw, they were just using other people’s money to pay you.
These transactions were all visible on public blockchain platforms like TronScan, showing huge amounts of money being moved in early April.
SEC’s Warning: Ignored at Their Own Risk
The SEC warned against investing in unregistered crypto platforms way back in January 2025! They urged the public to be careful when dealing with any platform promoting digital or online trading. Sadly, many Nigerians ignored the warning, blinded by the promise of easy money and influenced by social media hype.
What Happens Next? The Aftermath of the CBEX Debacle
Right now, CBEX’s website and app are down. No one from the company has said anything official. Law enforcement is supposedly investigating. But the big question is: will investors ever see their money again?
