CBEX Ponzi Scheme: Nigerians Lose Savings
The CBEX Ponzi scheme has left thousands of Nigerians devastated, with many losing significant amounts of money, and has raised concerns about the regulation of digital trading platforms and the protection of investors in Nigeria.
Thousands of Nigerians have lost their savings to a Ponzi scheme called CBEX, a digital trading investment platform that promised to double deposits within 40 days, with some investors losing over $100,000.
The scheme, which claimed to use AI to mitigate risk, offered bonuses for referrals and asked investors to complete their trading volume to receive their bonuses. However, the platform suddenly paused withdrawals, leading to panic among investors. The operators of the scheme blamed hackers for the loss, but users were asked to pay between $100 and $200 to recover their funds, further exacerbating the situation.
The CBEX trading platform, which promised a 100% return on investment within one month, became inaccessible after users experienced difficulties withdrawing their funds. Upon investigation, many discovered their account balances had been wiped to zero, leaving many Nigerian women in tears after allegedly losing millions. A mob of angry investors stormed the Ibadan office of China Beijing Equity Exchange (CBEX), looting furniture, electronics, and valuables, and demanding justice.
The Securities and Exchange Commission (SEC) has stated that unregistered platforms like CBEX are illegal, and the platform is now under scrutiny for allegations of fraud and deceptive practices. Authorities have not issued an official statement, and it's unclear if any arrests have been made, leaving the affected users without any clear recourse or resolution.
The collapse of the CBEX trading platform has highlighted the risks of investing in unregistered and unregulated schemes, and the need for investors to be cautious and vigilant when investing their hard-earned savings. As the situation continues to unfold, it remains to be seen what actions will be taken to address the losses suffered by the affected users and to prevent similar schemes from operating in the future.