Nigerian investors have begun counting their losses following the sudden crash of CBEX, a digital asset trading platform, which reportedly wiped out over N1.3 trillion from investors’ accounts.
New Telegraph reports that the platform, which paraded itself as a secure trading environment offering mouthwatering returns, crashed on Monday, April 14, leaving users shocked as the funds in their wallets vanished without a trace.
In a move that has only deepened suspicion, CBEX locked its Telegram channels shortly after the incident and suspended all withdrawals.
However, dangled a so-called “lifeline” to investors, offering them the option of retrieving $2,000 after paying a $200 verification fee or $1,000 for a $100 verification fee.
During a discussion on an X Space hosted by Trending X, cryptocurrency expert and security analyst, Taiwo Owolabi shed more light on the scam.
According to Owolabi, blockchain data analysis revealed that the siphoned funds were moved to a TRX wallet address (yourself:TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf), with the total amount stolen currently valued at $847 million in USDT — a figure that is expected to rise.
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“From the available data, the money is gone,” Owolabi stated. “CBEX is not a licensed platform. The operators designed a weak, lookalike website modeled after ByBit — a legitimate trading platform — to deceive unsuspecting investors.
“They even planned it in such a way that, when this day would come, they could conveniently claim it was a security breach.”
He went on to explain the fraudulent mechanics behind the platform: “When you deposit money, you are actually sending funds to a TRX address. The operators then quickly transfer the funds, convert them to USDT, and later to ETH.
What users see on their dashboards are just numbers. The so-called AI trading and daily profit growth are nothing but an illusion. When withdrawals are processed, what you are actually receiving is money deposited by another victim.”
Owolabi likened the scheme to the classic “rob Peter to pay Paul” model, which is common in Ponzi operations. “They count on your greed to keep you trapped in the cycle.
“Once you receive a payout, you are more likely to reinvest — often with a larger amount — spreading the word and drawing in new victims,” he added.
CBEX had promised its investors a 100% Return on Investment (ROI) within 30 days, presenting itself as a transparent and secure trading environment.
“However, the platform’s credibility has been shattered as users report difficulty accessing their funds, and investigations suggest that withdrawal records were falsified to create the illusion of a functioning system.
Owolabi warned that the so-called “verification fee” is likely another ploy to extract more money from desperate victims, only for a few to receive partial payments while the majority are left stranded.
“The pattern is clear: this is the same strategy employed by countless Ponzi schemes that have targeted Nigerians in the past,” he said
