Is There Any Hope For Investors To Withdraw Their Money on CBEX?
Nigerians across various social media platforms have started to assess their losses as a digital asset trading platform known as CBEX allegedly drained over N1.3 trillion from the accounts of its investors. The platform experienced a collapse on Monday, resulting in the disappearance of funds from investors’ wallets. CBEX has also restricted access to its Telegram channels and delayed withdrawals, offering investors a lifeline of $2,000 for a $200 verification and $1,000 for a $100 verification.
During an analysis of the crash on a space hosted by Trending X, cryptocurrency expert and security analyst Taiwo Owolabi indicated that data suggests the funds were transferred to a TRX address (yourself:TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf), with a total amount stolen in USDT reaching $847 million, a figure that is expected to rise.
Owolabi emphasized that the invested funds are irretrievable as CBEX operates without a license, and its creators have constructed a subpar website designed to mimic ByBit, a legitimate trading platform. He stated, ‘They created the substandard website to mislead individuals in the future into believing that a security breach was responsible for their losses. In reality, when payments are made, they are directed to a TRX account, which is then quickly emptied, with the funds converted to USDT and subsequently to ETH.
Therefore, when you log into your account, there is essentially no money reflected in your profile. What you see are merely figures. All the daily activities you engage in to ‘trade’ are designed to inflate your perceived wealth. The AI trading is a fabrication. When it comes time to withdraw, you will receive funds from another individual.
Given that you are unlikely to withdraw due to greed, you will probably reinvest that money and even more. Consequently, they will utilize those same funds to pay another investor. As you promote their platform, additional individuals will join and replicate the same behavior.’
What is CBEX?
CBEX is a digital asset trading platform that promises investors a 100 percent Return On Investment within 30 days, claiming to establish a secure and transparent environment for transactions.
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.
Is it still possible for Nigerians to withdraw their money?
According to Owolabi’s explanation on the X space, all of the money is actually gone. They will settle some people while leaving others to linger unless consumers choose to pay the $100 and $200 verification costs.
In addition, he insisted that it was similar to how well-known Ponzi schemes had previously defrauded Nigerians, saying, “It is a rob Peter to pay Paul’ deal.”
Nigerians are cautioned by the SEC not to invest in Ponzi schemes
But as worries about the crash grew, the SEC clarified that it is now illegal for any organisation to run an online forex trading platform or offer associated services without first registering with the commission under the recently signed ISA 2025 by President Bola Tinubu.
“Any business entity that intends to establish a business in any of these areas is encouraged to visit the commission’s HOD DRM Department for additional guidance on how to register with the commission in order to avoid sanctions,” the statement continued.
It pointed out that Section 3(3)(b) of the Act expressly requires the Securities and Exchange Commission (SEC) to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues,” giving the commission the authority to oversee a wider range of market activities under the recently passed legislation.
The new law is “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices,” according to Dr. Emomotimi Agama, the commission’s director general.
“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 while ensuring rigorous oversight. ‘We embrace innovation, but it must take place within a regulated framework that safeguards investors and upholds the integrity of our market,’ Agama stated.
