In a dramatic turn of events, Nigeria’s financial landscape has been rocked by the sudden collapse of the online digital trading platform, CBEX, which reportedly swindled investors of over N1.3 trillion (approximately $3.2 billion). The fallout has sparked widespread outrage, with authorities now actively investigating the scheme as thousands of Nigerians face financial ruin.
EFCC and INTERPOL Launch Urgent Investigation
The Economic and Financial Crimes Commission (EFCC), Nigeria’s premier anti-corruption agency, confirmed it has initiated a comprehensive probe into CBEX’s operations. Spokesperson Dele Oyewale disclosed that investigations began even before the platform’s collapse, which occurred on Monday. Efforts are now underway to arrest both local Nigerian collaborators and international operators behind the scheme, with INTERPOL joining the effort to trace the foreign masterminds involved.
Oyewale emphasized, “We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure Nigerians are protected from such schemes. Where recovery is possible, we will recover; where prosecution is viable, we will pursue it.” The EFCC’s collaboration with INTERPOL underscores the international dimension of this financial crime, which has left thousands of investors in despair.
Massive Financial Losses and Public Outrage
CBEX, operated by a consortium of foreign nationals alongside Nigerian partners, promised investors extraordinary returns up to 100% profit within 30 days. Many Nigerians, driven by economic hardship and the lure of quick riches, invested large sums, only to be met with heartbreak as the platform suddenly went offline, with withdrawal options suspended. Reports indicate that at least $847 million in USDT (Tether) was stolen, with some estimates suggesting the total loss could be as high as N1.3 trillion.
The platform’s collapse has incited anger across social media platforms. Victims, many of whom are young and hopeful, shared emotional videos of their despair, with some looting CBEX offices in Ibadan in a violent protest. Others have expressed fears of losing their entire savings, with some claiming to have lost as much as $16,000. The public’s frustration is compounded by previous scams like MMM and other Ponzi schemes that have repeatedly victimized Nigerians over the past decade.
Government Warnings and Regulatory Failures
Despite warnings from Nigeria’s Securities and Exchange Commission (SEC) about unregistered and fraudulent investment schemes, many Nigerians continued to fall prey to schemes promising unrealistic returns. The SEC had flagged CBEX prior to its collapse, warning investors to exercise caution and verify investments with regulatory bodies. Yet, the allure of quick wealth proved irresistible for many, leading to catastrophic losses.
The recent signing of the ISA 2025 by President Bola Tinubu aims to tighten regulations around online forex and digital trading platforms, making it a criminal offense to operate unregistered entities. Nonetheless, the damage inflicted by CBEX highlights the urgent need for stricter enforcement and public education on financial scams.
A Pattern of Repeated Scams
CBEX is not an isolated incident. Nigeria has a long history of Ponzi schemes collapsing after promising high returns, including Mundial Moneybox (MMM), Ultimate Cycler, and others, which have collectively defrauded billions of Naira from unsuspecting investors. The recurring nature of these scams underscores a systemic failure in financial regulation and public awareness.
Conclusion
The CBEX collapse has exposed the vulnerabilities in Nigeria’s financial ecosystem, where greed and lack of due diligence have repeatedly led to devastating consequences. With EFCC and INTERPOL now involved, authorities are determined to bring the perpetrators to justice and recover stolen funds.
However, the incident serves as a stark warning to Nigerians: always verify investment opportunities with registered regulatory bodies, and remain cautious of schemes promising extraordinary returns with little risk.
As the investigation unfolds, the nation watches anxiously, hoping for justice and a renewed commitment to protecting ordinary citizens from financial predators.
