CBEX, a digital asset trading platform, has been at the center of a storm following its alleged Ponzi scheme that has led to the hospitalization of over 27 persons. The platform, which operated without legal approval from the Nigeria Securities Commission, crashed on Monday, leaving thousands of investors with losses amounting to N1.3 trillion. The crash has sparked widespread outrage among Nigerians, with many taking to their social media platforms to lament their losses. The digital platform locked its Telegram channels and postponed withdrawals, offering investors the option of $200 for $2,000 verification and $100 for deposits below $1,000. The move has been met with severe criticism, with many calling it a desperate attempt to salvage what’s left.
According to a victim, Sherif Latifu, many hospitals in Ibadan are now admitting victims of CBEX fraud. Over 27 people that I know have been admitted. This is a major crisis in Ibadation and the governor should come to our rescue by subsidising the hospital bills for many. The cryptocurrency expert and security analyst, Taiwo Owolabi, has shed light on the CBEX crash. He stated that the total volume of stolen investors’ funds so far in USDT was $847 million and likely to increase. Owolabi questioned why Nigerians would invest their money in a digital platform that was unregistered by the SEC with the promise of a 100 percent return on investment. “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, and 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,” Owolabi explained. The SEC recently warned Nigerians to stay clear of unregistered trading platforms. The commission pointed out that, in accordance with the ISA 2025 recently signed by President Bola Tinubu, it is now an offense for any entity to operate an online forex trading platform or provide related services without prior registration with the commission. Some residents of Ibadan have stormed the office of CBEX, located at Oke Ado area of Ibadan, in protest. They have been calling for the resignation of the management and the platform’s immediate shutdown.
“By virtue of this act, it is an offense 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 planning to set up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions,” it added.
This is a major crisis in Ibadan, and it’s imperative that the government takes immediate action to address the situation. The situation is not just about the financial losses but also about the emotional trauma and distress caused to the victims. It’s crucial that the government provides adequate support to those affected, including subsidizing hospital bills and providing financial assistance. The CBEX crash has also raised questions about the regulation of digital assets in Nigeria. It’s essential that the government takes a proactive approach to regulating the industry, ensuring that platforms like CBEX are registered and operate within the bounds of the law. In conclusion, the CBEX crash is a wake-up call for Nigerians to be more vigilant when investing in digital platforms. It’s essential that we take a closer look at the industry and ensure that we are protected from such scams in the future.
| Key Highlights |
|---|
| Over 27 persons hospitalised due to CBEX crash |
| N1.3 trillion invested by Nigerians in the platform |
| CBEX operates without legal approval from the Nigeria Securities Commission |
| SEC warns Nigerians to stay clear of unregistered trading platforms |
What is CBEX and How Did It Crash?
CBEX is a digital asset trading platform that operates without legal approval from the Nigeria Securities Commission. The platform promised a 100 percent return on investment, but it turned out to be a Ponzi scheme. The platform’s management moved the investors’ funds from a TRX account to a USDT account, and then to ETH, making it difficult for investors to access their funds. The SEC’s ISA 2025 recently signed by President Bola Tinubu makes it an offense for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.
What Can Be Done to Prevent Such Scams in the Future?
To prevent such scams in the future, it’s essential that the government takes a proactive approach to regulating the digital assets industry. Here are some steps that can be taken:
* Registering all digital asset trading platforms with the SEC
* Implementing strict regulations on the industry
* Providing education and awareness programs for investors
* Increasing penalties for those who engage in Ponzi schemes
By taking these steps, we can ensure that the digital assets industry is safe and secure for investors.
Conclusion
The CBEX crash is a major crisis in Ibadan, and it’s imperative that the government takes immediate action to address the situation.
news is a contributor at AurumXchange. We are committed to providing well-researched, accurate, and valuable content to our readers.
