Chaos erupted in the Oke Ado area of Ibadan, Oyo State, as furious investors stormed and looted the office of CBEX. The digital asset trading platform was exposed as a Ponzi scheme that collapsed with an estimated $847 million in investor funds. The violent outburst followed reports that user accounts were wiped clean, leaving thousands of Nigerians who had poured their savings into the platform devastated and desperate for answers.
Videos circulating on social media captured the scene: a mob of enraged youths forcibly entering the CBEX office, carting away air conditioners, fans, furniture, and even glass panels. The looting, which unfolded hours after the platform’s crash became undeniable, underscored the depth of frustration among investors who had been lured by CBEX’s promise of a 100% return on investment within 30 days.
“This is our money they stole!” one looter shouted in a clip shared widely online, reflecting the raw anger fuelling the destruction.
The collapse of CBEX has sent shockwaves across Nigeria, with blockchain analysis revealing that $822.85 million (₦1.337 trillion) was syphoned into a private Ethereum wallet via a TRON (TRX) address (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf) over the weekend before the crash.
The platform, suspected to be based in Belize with no identifiable owners, had already raised red flags when it suspended withdrawals last week, citing “system upgrades”. On Monday, users woke up to zero balances, with CBEX locking its Telegram channels and demanding “verification fees” of $100 to $200 to restore access, a tactic that looks like a final ploy to extort desperate investors.
CBEX investors count their losses
The financial and emotional toll on CBEX’s Nigerian investors, who formed the bulk of its user base, is staggering. Many had invested life savings, drawn by the platform’s aggressive marketing and testimonials of early payouts that masked its Ponzi nature.
“I put in $4,000 to fund my music career, and now it’s all gone,” lamented @r2kizzmusic on X, echoing the despair of countless others. Another user, @BigDekun, expressed disbelief at the scale of the loss, noting that the $826 million figure was “still rising”.
Telegram messages shared by investors revealed great anguish. One user wrote, “I lost $1,000, but I believe it’s not the end of life,” while another vowed, “God will punish those responsible.”
The emotional distress has sparked concerns about mental health, with unconfirmed reports of some investors contemplating extreme measures.
“If you know anyone involved with CBEX, check on them,” urged @Fresh_Thiago on X, highlighting the potential human cost the crisis could cause.
The CBEX saga has drawn comparisons to past Ponzi schemes like MMM and Rackstelli, which similarly preyed on Nigerians’ hopes for quick wealth amid economic woes. “Nigerians never learn,” posted @Captal_DC. sarcastically, pointing to the recurring cycle of scams exploiting financial desperation. @SunnyEjim speculated that CBEX might be linked to the 2020 Pennywise scam, predicting the operators would soon rebrand to ensnare new victims.
Regulatory gaps and calls for action
The Securities and Exchange Commission (SEC) has reiterated that unregistered platforms like CBEX are illegal under Nigerian law. Speaking at a virtual engagement on the Investment and Securities Act (ISA) 2025, SEC Director General Emomotimi Agama warned, “If it is not registered, it is illegal.” Checks confirmed CBEX was not listed in the SEC’s database, aligning with its fraudulent operations. The ISA 2025 empowers the SEC to prosecute offenders with penalties including 10-year jail terms and fines up to ₦40 million, but critics argue the agency’s reactive stance failed to prevent CBEX’s rise.
The Economic and Financial Crimes Commission (EFCC) recently listed 58 illegal operators in Nigeria, underscoring the rampant spread of Ponzi schemes. Experts are calling for a proactive overhaul of Nigeria’s regulatory framework.
“The SEC and EFCC must monitor digital platforms in real-time, collaborate with global regulators, and use blockchain tracing to stop scams early,” a cryptocurrency analyst said. He noted that CBEX’s weak website design, mimicking legitimate exchanges like ByBit, should have been an early warning sign.
Public awareness campaigns are also critical, experts say. “Nigerians need financial literacy to spot red flags like guaranteed high returns.” The SEC’s warnings, while consistent, often reach investors too late, leaving many vulnerable to schemes exploiting economic hardships and low trust in traditional banking.
As authorities have yet to comment officially on the Ibadan looting, questions linger about whether arrests will follow or if investors will recover their funds. CBEX’s assurances last week that withdrawals would resume on April 15 proved false, and its claim of a “hack” has been dismissed as a cover for fraud. “They played on our greed, and we fell for it,” admitted @morolaoluwa on X, urging others to avoid similar platforms.
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