CBEX Crash Plunge Nigerian Users to Disarray

CBEX users experienced distress after the trading platform disappeared from the internet while operating in Nigeria. The initial reports of platform maintenance led some users to expect a solution but many now believe CBEX to operate as a Ponzi scheme.

The public warning from Hong Kong Securities and Futures Commission (SFC) identified "CBEX Group" as a suspected perpetrator of virtual asset-related fraud. The SFC warned against "CBEX Group" which operated online under a name similar to a respected organization thus deceiving investors.

Users from Nigeria began reporting account lockouts alongside withdrawal troubles with the platform during the middle of April 2024. At first a certain X user raised concerns that certain members were unable to access their funds.

Some users defended the platform at first and explained that withdrawals were postponed until April 15th but other users raised fears about its stability and potential failure. The Nigerian cryptocurrency experts on X warned users to stay away from platforms similar to CBEX due to the elevated dangers involved in such operations.

New development shows a certain account moving out Millions of dollar from the account to a another crypto address

The impact on Nigerians who invested in CBEX appears significant. Many have reported the inability to withdraw their virtual assets. Some users were completely locked out of their accounts, losing access to their investments. 

On X user said “Nigerians are street smart, lies. What we call street smart is simply dishonesty and an affinity for sharp practices, when it comes to critical thinking and pattern recognition we fall horribly short and are the easiest people to scam. We are so gullible, which is why CBEX thrived”.

Also Khaled believed that CBEX is a disguised MMM, while Marxx under his tweet said that “if you are a victim of this CBEX, i hope you get as scammed a million times again”

X user post

Also sources said that users of CBEX who were able to login found out that money in their account has been wiped out. Abazz and popular X user shared a screenshot of before and after of a user account.

Another source, Dr Penking from X shared a picture where someone lost over 180k dollar to the ponzi scheme, he said “This guy lost 180k dollar on CBEX, why Nigeria mumu like this ? Even if you are too lazy to run a business. You can build at least 10 three bedroom flats spread across Nigeria with that amount and rent them out. You will never be broke again”

In Ibadan, angry investors reportedly stormed a CBEX office, indicating the level of frustration and financial impact experienced by users in Nigeria. 

A source said that on CBEX's official telegram group, they posted that all accounts need to undergo verification following verification steps to ensure their authenticity, stating a certain amount that accounts within a certain level will have to pay.

CEBX Telegram post

Many believe this is the last tactic adopted by the owners of CBEX to defraud Nigerians again.

The SFC had warned the public about "CBEX Group" because it operated without necessary licenses both in Canada and Japan despite advertising Canadian headquarters and Japanese platform operations.

The platform's lack of compliance with regulators raises a lot or red flags makes its credibility become questionable.