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At least 27 people have reportedly been hospitalised in Ibadan, Oyo State, following the shocking crash of CBEX, a digital asset trading platform now widely labelled as a Ponzi scheme.
The platform, which lured thousands of Nigerians with promises of high returns, allegedly disappeared with over ₦1.3 trillion of investors’ money on Monday, leaving users devastated and financially crippled.
According to reports, CBEX operated without legal approval from the Securities and Exchange Commission (SEC) and suddenly disabled withdrawals, locked its Telegram support channels, and rolled out a suspicious new “verification” scheme—offering $200 to investors who lost $2,000 and $100 for losses under $1,000.
“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 Ibadan,” said Sherif Latifu, a victim of the crash, who called on Governor Seyi Makinde to intervene by subsidising hospital bills for affected individuals.
How It Happened
According to Taiwo Owolabi, a cryptocurrency and security analyst, CBEX used technical manipulation to give users the illusion of profits while quietly draining funds behind the scenes.
“What users saw on their dashboard were just numbers. The AI trading was fake. When people paid into their TRX accounts, the funds were immediately converted to USDT and then ETH. It was all smoke and mirrors,” Owolabi explained during an X Space.
He revealed that at least $847 million in USDT had already been traced as stolen, with the figure expected to rise.
In response to the collapse, angry residents stormed the CBEX office located in the Oke Ado area of Ibadan, demanding answers and a refund of their lost investments. Tensions remain high in the area, as more victims come forward.
This incident comes just weeks after the Securities and Exchange Commission (SEC) warned Nigerians against investing in unregistered platforms. The commission cited the ISA 2025, recently signed into law by President Bola Tinubu, which makes it a criminal offense to operate or invest in online forex or asset trading platforms not licensed by the SEC.
“It is now illegal for any entity to operate a digital trading platform without registering with the commission. Offenders risk facing serious sanctions,” the SEC warned in a statement.
