The recent collapse of the digital investment platform CBEX has plunged hundreds of Nigerians into financial distress, with reports confirming that at least 46 investors have been hospitalized in Lagos and Oyo states due to the emotional and physical toll of losing their savings. The platform, which promised investors a staggering 100% return within a month, abruptly shut down, leaving investors unable to withdraw funds totaling over N1.3 trillion (approximately $3.2 billion) and sparking widespread outrage.
Hospitalizations and Emotional Trauma
In Oyo State alone, 27 investors have been admitted to various hospitals after suffering severe stress and related health complications stemming from the sudden loss of their investments. Victims have taken to social media to express their despair, with some pleading for government intervention to subsidize hospital bills. One eyewitness described the situation as a "major crisis," highlighting the devastating human impact of the financial collapse.
Violent Protests and Security Response
The frustration boiled over in Ibadan, where angry investors stormed the CBEX office in the Oke Ado area, looting and vandalizing the premises. Items such as air conditioners, fans, and office furniture were carted away in a chaotic protest against what many see as a betrayal by the platform’s operators. In response, the Nigerian Police and the Western Nigeria Security Network (Operation Amotekun) swiftly took control of the site to prevent further disorder and maintain law and order.
How the Scam Worked
Cryptocurrency and security experts have revealed that CBEX operated as a Ponzi scheme under the guise of an AI-powered trading platform. Investors deposited funds, often in USDT (Tether), which were quickly moved through various cryptocurrency wallets and converted to Ethereum, leaving no real backing for the balances shown on users’ accounts. The platform’s website was deliberately designed to appear legitimate, with fake trading activity inflating account values until withdrawals were suspended and ultimately impossible.
Regulatory Warnings and Legal Framework
The Securities and Exchange Commission (SEC) had previously warned Nigerians about unregistered online trading platforms like CBEX. The recent collapse has intensified calls for stricter enforcement of the newly signed Investments and Securities Act (ISA) 2025, which criminalizes operating such platforms without SEC registration, carrying penalties of up to 10 years imprisonment and fines exceeding N20 million.
SEC’s Director General, Dr. Emomotimi Agama, emphasized that the commission is committed to protecting investors and ensuring market integrity. He urged Nigerians to verify the registration status of any investment platform before committing funds, underscoring that innovation must be balanced with regulation to prevent future scams.
A Cautionary Tale
The CBEX debacle is yet another reminder of the dangers posed by unregulated digital investment schemes in Nigeria. Many victims, including individuals like Bolarinwa, who invested life savings and borrowed money after years of hard work abroad, now face financial ruin. The incident has reignited urgent conversations about financial literacy, investor protection, and the need for stronger regulatory oversight to shield Nigerians from similar fraudulent schemes in the future.
As investigations by the EFCC and INTERPOL continue, the nation grapples with the aftermath of one of the largest Ponzi scheme collapses in recent memory, hoping for justice and recovery for the devastated investors.
