The CBEX office, located at Number 166, Idimu Road, Seliat Bus Stop, became the focal point of the investors' fury as they forced their way past the main gate and into the building. However, they were unable to gain access to the main office, which was found deserted. The usually bustling office was devoid of any staff members or security personnel, leaving a palpable sense of abandonment and betrayal.
Eyewitnesses reported that the affected investors, numbering in the hundreds, began arriving at the Egbeda, Alimosho Local Government area location as early as 9 am. Their initial confusion quickly turned to anger and desperation as they realized the extent of the alleged scam.
In response to the volatile situation, armed policemen, including operatives from the Rapid Response Squad (RRS), were deployed to the scene from the Lagos State Police Command's Idimu Area “M”. They arrived in patrol vans at approximately 10 am, tasked with maintaining security, protecting property, and preventing a potential breakdown of law and order. At the time of reporting, there was no confirmation of any arrests related to the alleged scam, nor was it clear if the landlord of the building housing CBEX had been apprehended.
The investors' outrage stemmed from the sudden crash of the CBEX trading platform last Friday. Subscribers reported being abruptly locked out of their accounts, rendering them unable to access their invested funds. This triggered widespread panic and fueled suspicions of a large-scale fraudulent operation.
The collapse of CBEX has brought renewed attention to the risks associated with unregulated cryptocurrency trading platforms. In a swift reaction to the unfolding events, the Securities and Exchange Commission (SEC) reiterated its stance on the legality of such operations.
The SEC emphasized that under the newly enacted Investments and Securities Act 2025, it is illegal to operate any digital asset exchange or online forex trading platform in Nigeria without formal registration with the commission. In a statement released on Sunday, the SEC explicitly stated that any entity engaging in the business of online foreign exchange trading platforms or related services without SEC registration is committing an offense under the new law.
On Wednesday, the depth of the investors' despair was evident as Vanguard reporters witnessed several victims in tears, recounting losses amounting to millions of Naira on the now-defunct CBEX platform.
One of the victims, identified only as Mr. Segun, a 35-year-old man, expressed his anguish and pleaded with relevant authorities for intervention. "How do I start now?" he lamented, pointing to the CBEX office. Segun explained the seemingly legitimate facade presented by the platform, noting the confusion between "China Inner Beijing Equity Exchange" and "CBEX, Crypto Bridge Exchange Smart-Treasures." He stated that CBEX promised "AI technology assisted Crypto trading" with an enticing "100 per cent return of investment being done in dollars" within 30 days.
Investors were instructed to deposit the Naira equivalent of dollars into a CBEX account for trading, with the promise of substantial returns. Segun mentioned that individuals who had joined the platform months prior had indeed seen significant gains, with one person reportedly even building a house through the scheme.
To further build trust, CBEX allegedly displayed certificates from the Nigerian Security Exchange (NSE) and the Economic and Financial Crimes Commission (EFCC) on their lavishly furnished office walls, leaving little room for skepticism among potential investors. The platform also regularly conducted well-attended seminars every Wednesday and Saturday and had recently expanded its operations by opening new offices in Ikeja and Ikorodu.
Mr. Segun recounted his personal loss, stating, "I joined not quite long ago with $1,700, about N1.7 million investment, now I’m at a crossroad. I got that money from a cooperative loan I collected with the plan of repaying after making my return." He also shared the stories of other investors who had suffered even greater losses, with one person he knew losing over $8,000, and many others losing thousands of dollars, potentially amounting to trillions of Naira in total.
He passionately appealed to the government and relevant authorities to intervene and protect the citizens who had entrusted their savings to the platform. Segun revealed that his wife had strongly encouraged him to invest, even suggesting he withdraw his dormant savings from a bank. "I did it, see where it landed me today. I thought I was smart before, but I have been scammed eventually," he said with regret. While acknowledging that some early investors had made substantial profits, he considered himself unfortunate, recognizing the hallmarks of a Ponzi scheme where early gains are funded by later investors. "These Ponzi operators do have targets. Once they attain some level of percentage of money then they strike," he observed.
Segun expressed his shock at the sheer amount of money the alleged scammers were able to amass in a short period, estimating it to be over a trillion Naira. He admitted to being initially convinced due to the platform's claim of engaging in legitimate cryptocurrency trading. "They said with crypto, if you put N1 million today you can also make N1 million immediately, making it N2 million in total and vice-versa," he explained, highlighting the unrealistic promises that drew many investors in.
The human cost of the CBEX collapse is becoming increasingly apparent. Segun shared the tragic news of a pensioner who reportedly died from shock after learning of his losses. He also mentioned a medical doctor who is currently hospitalized due to the stress of the situation, and that approximately 50 nurses are among the affected investors.
Disturbingly, there were unconfirmed reports of a female victim committing suicide after realizing she had lost a loan she had secured for her husband to invest in CBEX. The victims reportedly include individuals from various professions, including ICT experts and bankers, underscoring the widespread reach of the alleged scam.
In a desperate attempt to retain investors' funds, CBEX officials had reportedly been assuring them that their money was safe. In a now-familiar tactic employed by collapsing Ponzi schemes, they had even claimed that scammers had hacked into their accounts and that they needed to "repack everyone’s money for safety" before the platform ultimately crashed.
Another victim, Mr. Victor Ozime, recounted his and his wife's losses, stating that he lost $4,000 while his wife lost $3,000. He expressed the profound financial distress the collapse has caused, questioning how they would now afford basic necessities like school fees and rent. "I had so many plans for the money. Right now, I feel like ending it all," he confessed, highlighting the severe emotional and psychological impact of the alleged fraud.
The unfolding CBEX saga serves as a stark reminder of the inherent risks associated with investing in unregulated online platforms promising unrealistically high returns. The incident is likely to intensify calls for stricter regulation of the cryptocurrency and online trading space in Nigeria to protect vulnerable investors from such fraudulent schemes.
The authorities are now faced with the daunting task of investigating the collapse of CBEX and potentially bringing those responsible to justice, while also addressing the urgent needs of the countless investors who have been left in financial ruin.