CBEX: The Ponzi scheme offering Nigerians 100% return on investment in 30 days
Prior to the recent uproar caused by investors’ inability to access their investments, many Nigerians had never heard of CBEX.
Crypto Bank Hybrid Exchange, popularly called CBEX, reportedly commenced in Nigeria in 2024, despite claims of existence since 2017, a timeline that contradicts its domain registration and distinguishes it from the legitimate China Beijing Equity Exchange.
According to a report, the platform aims to blend traditional banking services with cryptocurrency trading, offering features like deposits, withdrawals, transfers and investments alongside a decentralised exchange (DEX) that allows trading without registration via Web3 wallets.
As gathered by WESTERN POST, recent data indicates low trading volume and limited market activity, with some platforms reporting a 24-hour volume of $0.
Being a cryptocurrency, regulation becomes an issue.
For the case of CBEX, multiple investors took to the social media site to express their dissatisfaction following the suspension of the withdrawal feature on April 10, 2025.
Multiple reports have it that the digital asset trading platform gives investors a 100 per cent Return On Investment (ROI) in 30 days.
A report has it that the embattled platform allegedly swept away over ₦1.3 trillion from unsuspecting investors, resulting in heartbreaking scenes on social media as investors in Nigeria weep and lament the loss of their life savings.
Trouble began when users began facing difficulties withdrawing funds from the platform. Many later discovered their account balances had been reset to zero — sparking widespread panic.
CBEX, once touted as a trustworthy avenue for digital asset trading, has since gone dark with no official explanation or refund process announced.
As affected individuals seek answers and possible legal redress, financial experts continue to urge caution and due diligence before committing to any form of investment, especially those operating outside the regulatory oversight of the CBN and the Securities and Exchange Commission (SEC).
The SEC had warned that the newly enacted Investments and Securities Act, 2025 (ISA 2025) has made it illegal to operate digital asset exchanges or online foreign exchange trading platforms without formal registration with the Commission.
Signed into law by President Bola Tinubu, ISA 2025 significantly strengthens the regulatory framework governing Nigeria’s capital market, with a particular focus on digital finance.
In a statement released over the weekend, the SEC clarified that, in accordance with the new law, 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 this area is advised to visit the HOD DRM Department of the Commission for further directives on how to register with the Commission to avoid sanctions,” the Commission 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.”
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 tune with global best practices.”
He stated, “The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms.”
The Commission reaffirmed its commitment to supporting innovation while maintaining strict oversight. “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Dr Agama added.
“With ISA 2025 now in force, stakeholders in the financial and investment ecosystem are advised to familiarise themselves with the new provisions and ensure full compliance,” the SEC added.
