What looked like a fast-track to financial freedom has now left many Nigerians in tears.
CBEX, short for China Beijing Equity Exchange, was one of the trending names in Nigeria’s crypto community. But on Monday, April 14, the digital trading platform crashed, leaving many investors stranded and confused.
On Tuesday, April 15, 2025, the chaos had moved offline. In Ibadan, Oyo State, angry users stormed CBEX’s local office in Oke Ado, demanding answers. Some even looted the premises, a scene now circulating on social media.
But how did it all fall apart so fast?
1. The 100% promise that raised eyebrows
CBEX promised its users double returns in just 30 days. According to screenshots shared by affected investors, the platform claimed to generate profits through automated digital asset trading.
However, financial analysts have warned that returns this high are a major red flag.
According to the Securities and Exchange Commission (SEC), any platform offering unrealistic returns is likely operating outside regulated frameworks.
2. Operating without a licence in Nigeria
Despite its wide reach, CBEX was not registered with Nigeria’s Securities and Exchange Commission (SEC).
In a statement shared earlier this year, the SEC clearly stated:
“It is an offence for any entity not registered by the commission to operate online foreign exchange or crypto trading services in Nigeria.”
CBEX’s CEO, Yahaya Ibrahim, had claimed the company was registered in Canada, but fact-checks by tech blogs like Technext and CryptoTV Plus found no public business registration under that name in Canada or Nigeria.
3. Signs of trouble began on April 9
Multiple users began reporting delays in fund withdrawals. Then came the controversial request: users were told to pay an extra $100 to $200 for “account verification” before their money could be released.
Crypto analyst Oladele Yusuf told Guardian Life, “That’s a common trick used in Ponzi schemes. Asking for more money before releasing previous funds is a way to trap users further.”
4. Blockchain data points to massive loss
Tech investigators who analysed blockchain movements say funds were traced to a specific Tron wallet.
Taiwo Owolabi, a Nigerian crypto security expert, said, “They designed the weak website to convince people in the future that it was a security breach that affected them. Apparently, when you make payments, you pay them into a TRX account, and then, immediately, they move it from that TRX wallet, gather it, convert it to USDT, then to ETH. So, when you are logging into your account, there is literally no money on your profile.
“What you see are just numbers. All the daily activities you do to ‘trade’ increase your money. All the AI trading is fake. When it’s time for withdrawal, they will send you another person’s money.
“Since you won’t be leaving them because of greed. You will most likely put the money back and even more. So, they will use that same money to pay another person. As you spread the word for them, more people will join and do the same.”
These transactions were verified on public blockchain platforms like TronScan, which shows large volumes being moved in early April.
5. SEC’s earlier warning was clear but overlooked
As far back as January 2025, the SEC had issued warnings against investing in unregistered crypto platforms.
Their statement read, “Members of the public are advised to exercise extreme caution when dealing with any individual or organisation promoting digital or online trading platforms.”
Unfortunately, many Nigerians still went ahead, lured by testimonies and social media influencers promoting CBEX without proper due diligence.
What’s next?
For now, CBEX’s website and app are inaccessible. No official statement has been released by the company’s leadership. Law enforcement agencies are reportedly investigating the matter.
