Nigeria: CBEX scandal: Investors besiege offices over missing funds
By Zuleihat Owuiye, Mamos Nigeria
Investors have swarmed the offices of Crypto Bridge Exchange Smart-Treasures, widely known as CBEX, in Lagos and Ibadan, following the sudden disappearance of their funds from the CBEX trading app. The platform, which was advertised as an artificial intelligence-powered cryptocurrency trading platform, promised users “100% returns every month.”
a large crowd of frustrated investors gathered at the CBEX gate, with some standing by the roadside while others attempted to force their way into the compound. Armed policemen were deployed to prevent a possible breakdown of law and order. Sources revealed that the landlord of the building housing CBEX was taken into custody by the police after protesters attempted to confront him over the scam.
One of the affected investors, Dele Aina, said he invested $500, expecting to receive 100% returns in 45 days or less. However, when he tried to withdraw his funds, he was unable to do so. Aina claimed that CBEX staffers insisted that only their boss knew the full details of the operation.
Another visibly distressed victim, identified as Bolaoluwa, broke down in tears as she recounted her ordeal. She invested $200, while her friends invested $1,000 each. Bolaoluwa lamented that she worked hard to earn her money in Libya and now fears she has lost it all.
The Securities and Exchange Commission has responded to the CBEX saga by reiterating that operating any digital asset exchange or online forex trading platform in Nigeria without formal registration is now illegal. The commission emphasized that entities not registered by the commission cannot carry out online foreign exchange trading platforms or related services.
This scandal has revived memories of the notorious MMM scheme, which collapsed in 2016 after promising investors 30% returns in 30 days. At its peak, MMM claimed to have over three million members before freezing transactions and leaving many devastated.
The CBEX scandal has left many investors devastated, with some taking to social media to share their stories of losing their funds. The incident highlights the need for investors to be cautious when dealing with unregistered investment platforms. The Securities and Exchange Commission’s response demonstrates its commitment to regulating the industry and protecting investors.
