In April 2025, CBEX, a digital asset trading platform that promised to double investors’ money withing 35 days, collapsed leaving thousands of Nigerians to face financial ruin, unable to access their capitals. While initial reports exaggerated losses to over ₦1 Trillion ($822 million), current estimates place total deposits to over ₦9 Billion ($6.1 Million). Despite the lower figure, the damage remains significant for affected individuals, many of whom invested life savings in hope for quick returns.
How It Worked
CBEX lured users with promise of higher return on investment and flashy claims of using Artificial Intelligence for trading. The platform aggressively pushed referrals, offering tiered bonuses to users who brought in new investors. Some of the victims revealed that they couldn’t even withdraw profits until they recruited at least 12 people. Behind the scenes, CBEX operated a classic ponzi scheme, using funds from new investors to pay earlier investors creating the illusion of profitability.
Despite it’s name, Chinese Beijing Equity Exchange (CBEX), CBEX has no ties to any legitimate Chinese institution. It claimed to have existed since 2017 but only began operations in Nigeria in July of 2024. It built credibility through fake offices and so-called local representatives, in reality, it was a shell company with no real financial backing.
The platform locked users’ funds for 30 to 35 days, then suspended withdrawals entirely in April 2025. Users watch their account balances drop to zero. In a final attempt to extract more money, CBEX asked users to pay “verification fees” of $100 or $200 to unlock phantom earnings of $1,000 or $2,000.
Though the total estimated deposits were around $6.1 million not the $822 million widely circulated online. The platform still caused immense pain for thousands of Nigerians. For many, the sums lost were life-changing. The fallout has sparked rage in Nigerians. Videos surfaced showing angry investors ransacking suspected CBEX offices in Lagos and Ibadan. On social media, Nigerians debated who was to blame. Some condemned the greed of participants, while others pointed to Nigeria’s harsh economic reality that drives people to seek risky investments.
Regulatory Response and New Protections
During a virtual fintech meeting on April 14, 2025, the Securities and Exchange Commission (SEC) warned Nigerians about unregistered investment platforms. Without mentioning CBEX directly, the SEC declared such operations illegal and stressed the importance of verifying platforms with proper registration. The newly signed Investment and Securities Act (ISA) 2025 gives the SEC more power to act, with stiffer penalties of up to 10 years in prison and a sum of ₦40 million in fines. Influencers and celebrities are also warned to stop endorsing unverified investment schemes.
CBEX crash adds to Nigeria’s long list of ponzi tragedies, from Umana-Umana and MMM to MBA Forex. This CBEX crash is a stark reminder that high returns with little risk almost always point to fraud. Breaking the cycle will require more than regulations. Nigerians need stronger financial education, better access to legitimate investment options and ongoing vigilance from regulators.
