The shocking collapse of CBEX, a digital asset investment platform, has once again highlighted the growing need for tighter regulation in Nigeria’s cryptocurrency and digital finance landscape.Â
As thousands of Nigerians reel from financial losses estimated in the billions of naira, public outcry is mounting over the lack of oversight that allowed the platform to operate unchecked for months.
CBEX’s Sudden Demise and Investor Losses
CBEX, falsely presenting itself as the “China Beijing Equity Exchange,” promised investors extraordinary returns—up to 100% within 30 days—through purported AI-driven trading strategies. The platform’s operations, however, bore the hallmarks of a classic Ponzi scheme, requiring user referrals and locking funds under the guise of high-yield investments. ​
In early April 2025, CBEX abruptly ceased operations, freezing user accounts and disabling withdrawals. Investors were further exploited by demanding “verification fees” ranging from $100 to $200, falsely promising access to their trapped funds. ​
Estimates of the financial damage vary. While some reports suggest losses up to ₦1.3 trillion (approximately $800 million), independent analyses indicate the actual figure may be closer to $12 million. ​
Public Outcry and Regulatory Response
The collapse has sparked widespread outrage. Affected individuals have taken to social media to share their experiences, with some confronting CBEX offices in cities like Ibadan and Lagos. ​
Nigeria’s Securities and Exchange Commission (SEC) has reiterated warnings against unregistered investment platforms. SEC Director General Emomotimi Agama emphasized that any platform not registered with the commission operates illegally. ​
Furthermore, in collaboration with Interpol, the Economic and Financial Crimes Commission (EFCC) has launched an investigation into the CBEX scheme, aiming to trace the flow of funds and hold perpetrators accountable. ​
Broader Implications for Nigeria’s Digital Investment Landscape
CBEX’s downfall underscores the vulnerabilities within Nigeria’s digital investment ecosystem. The platform’s ability to operate unchecked highlights gaps in regulatory oversight and the need for proactive measures to protect investors.​
Experts point to socioeconomic factors—such as high unemployment and limited financial literacy—as contributing to the proliferation of such schemes. The allure of quick financial gains makes many susceptible to fraudulent platforms promising unrealistic returns.​
What Next?
The CBEX incident is a stark reminder of the risks associated with unregulated digital investment platforms. It emphasizes the urgent need for Nigeria to bolster its regulatory framework, enhance public awareness, and implement stringent measures to safeguard investors in the digital asset market.
