Due to reports that a digital asset trading platform called CBEX stole more than N1.3 trillion from the accounts of its investors, Nigerians on various social media platforms have started to calculate their losses.
After the investors’ money disappeared, the digital trading platform fell on Monday.
In addition to delaying withdrawals and locking its Telegram channels, CBEX provided investors with a lifeline of $2,000 for $200 verification and $1,000 for $100 verification.
Data has indicated that the money was transferred to a TRX address (yourself:TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf), and the total amount stolen in USDT to date is $847 million, according to Taiwo Owolabi, who conducted an analysis of the crash on X space organized by Trending X, a cryptocurrency expert and security analyst.
Owolabi emphasized that since CBEX is not a regulated platform and its developers created a shoddy website to mimic ByBit, a reputable trading platform, the invested cash are lost.
“They created the shoddy website to persuade people later on that they were impacted by a security vulnerability. It seems that when you pay them, they transfer the money from that TRX wallet, collect it, convert it to USDT, and then to ETH right away. Therefore, there is absolutely no money on your profile when you go onto your account.
“What you perceive are merely figures. Every action you do on a regular basis to “trade” makes your money grow. AI trading is entirely fraudulent. They will send you someone else’s money when it’s time to withdraw.
Because you won’t be abandoning them out of avarice. It’s likely that you’ll return the money and more. They will therefore pay someone else with that same sum of money. More others will join and follow suit as you spread the news for them.
What is CBEX exactly?
A digital trading asset platform called CBEX offers investors a 100% return on their investment within 30 days. Its stated objective was to establish a transparent and safe transaction environment.However, when claims of fraud and dishonest business practices surface, its operational model is also being examined. It is alleged that the platform presents fabricated withdrawal records in order to conceal the challenges users have when attempting to retrieve their money.
Can Nigerians still withdraw their money?
Owolabi, while explaining on the X space, said that in reality, all the funds are gone. Unless people decide to pay the $100 and $200 verification fees, that way, they will settle some people and leave others to languish.
He also maintained that it was the same way popular Ponzi schemes that have duped Nigerians in the past behaved, adding, “It is a rob Peter to pay Paul’ deal.
SEC warns Nigerians against investing in Ponzi schemes
However, amid the growing concerns of the crash, the SEC clarified that, in accordance with the ISA 2025 recently signed by President Bola Tinubu, it is now an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.
“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.
“Any business entity with the plan of setting up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions,” it added.
The commission noted that “Under the newly enacted legislation, the Securities and Exchange Commission (SEC) is now empowered to regulate a broader scope of market activities as Section 3(3)(b) of the Act explicitly mandates the commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.”
Speaking on the development, the director general of the commission, Dr Emomotimi Agama, described the new law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tun
“The ISA 2025 has provided the commission with the legal support to improve market confidence, protect investors, and provide clarity, particularly in new and previously unregulated segments like digital asset exchanges and online foreign exchange platforms,” he said.
The commission reiterated its dedication to fostering innovation under stringent supervision. “We embrace innovation, but it needs to take place in a controlled setting that safeguards investors and upholds the integrity of our market,” Agama continued.
e with global best practices.”
About The Author
