By Adeyinka Adeniran
The sudden crash of CBEX Ponzi scheme leaves investors in tears. Yinka Adeniran writes
The centre
They were dumbfounded. Short of words. They were both male and female, across all ages. Many of them secretly wish they were dreaming and maybe wake up to a different tale. But, some others were looking at the slightest opportunity to take their pound of flesh. They were the victims of a ponzi scheme, CBEX which allegedly crashed, Monday night.
While some roll on ground in tears, some other were looking distrust and far from reality. They were seated at the Oke Ado office of CBEX, in Ibadan.
No doubt they were all waiting and hoping to hear another version of what had just happened to them.
The hundreds sighted at the CBEX, Ibadan office were part of thousands of Nigerians who have been left financially devastated after the collapse of CBEX, a cryptocurrency investment platform that promised unusually high returns.
The aggrieved investors who besieged the office of CBEX in Ibadan in various accounts said they lost monies to the tune of several millions of Naira in a bid to invest in the scheme.
The investors said they have been made to swallow bitter pills with the reported crash of the investment that culminated into loss running into hundreds of millions of naira.
The victims said they are yet to come to terms with the situation as they are still hoping that it would be revived.
As at the time of this report, it could not be confirmed if the scheme operated with registration with the Security and Exchange Commission (SEC), but there was no doubting that they company succeeded in luring investors with promises of doubling their deposits within 30 days.
According to reports, over $935 million (approximately N1.5 trillion) in funds are trapped or lost.
The lure and the crash
According to sources, CBEX’s business model was based on a compound interest system, where investors were told that AI technology would trade only 1 percent of their balance twice daily to mitigate risk.
However, the platform’s sudden restriction on withdrawals and subsequent crash have exposed it as a Ponzi scheme. Investors were asked to refer new people to increase their trading signals by 12 percent, a classic trait of such schemes.
Investors’ Agony
Many investors have lost life savings, with some saying they even borrowed money to invest in the scheme.
An investor who identifies himself as Olubiyi Ojewale explained that he invested on the scheme with the money meant to renew his tenancy.
According to him, his house rent was due for payment in February but he begged his landlord to give me till 9th of May when he must have withdrawn from his savings in the scheme.
He said, “I invested $300 on 4th of April with the hope of making first withdrawal on 9th of May but the scheme unfortunately crashed on 15th of April.
“I am finished, I will be homeless from next month because I have invested all the money saved to renew my annual house rent on CIBEX. I won’t lie to you it will affect me in many ways because I don’t have any other way of raising the money for now.
“I don’t know what to tell my landlord by next month after I have already begged for three months. Greed has killed me. If I had known I would have paid my house rent instead of investing the money. where will I raise money if I am served quit notice over failure to pay the rent?
“I am scared I will be homeless soon, If I am permitted to stay here I will bring my belongings here to their office here in Oke Ado since I am about to be homeless due to my investment in the scheme.“
Another investor, Fola Olaoye said he introduced his landlord to the scheme, who invested $1,000, and his son invested $6,000.
Olaoye said he is now avoiding his landlord’s calls, fearing he might be sent away from his house.
He said, it was his landlord who enlisted his son who invested $600 about N1million in the scheme
He said, “I invested $600 as well persuaded my landlord to invest in the scheme alongside his son. They invested a total sum of $1600 in the scheme but unfortunately they had not withdrawn neither their capital nor profit before it crashed.
“I have to put my phone on flight mode to avoid his calls, I don’t know how to face him now, I am scared this will affect our relationship and he might send me away from his house “
One of the victims who craved anonymity explained that he invested his retirement benefits from the bank in the scheme.
“My initial plan is to invest the gains accrue from the scheme in a particular business. I, even, encouraged my wife to do the same.
“My wife invested $7,000 dollars in the scheme. We are finished. We have lost all that we have laboured for in life. I regret investing my life savings on the scheme now that all is gone. I even regret encouraging my wife to invest all her savings on the scheme. All we have is gone.”
Another investor Olaoluwa Adebayo stated that he invested with $15000 US after his return from United Kingdom. He said he was convinced by a friend’s withdrawal of $11,000 from the scheme.
He added that the money was meant to start up business here but he decided to invest in the scheme first before starting the business.
He added that he didn’t believe in the scheme because he was a forex trader when he was in the UK but was convinced after his friend here in Nigeria withdraw 11000 US dollars from the scheme in his presence, so he was later convinced and invested with 15,000 US dollars .
He said, “ I invested with 15000 US dollars after my return from the United Kingdom and the money was meant to start up business here in Nigeria but I decided to invest in the scheme first before starting the business, at first I didn’t believe in the scheme because I also trade in forex but I invested in it after my friend here in Nigeria withdraw 11000 US dollars from the scheme in my presence.
“So, this convinced me and invested 15,000 US dollars on it, I withdrew my money before investing the money back on the scheme , but sadly our money is gone.“
Early looting
Shortly after the news of the potential crash of the platform filtered among investors, hundreds of investors biseged the Oke Ado, Ibadan, office, looting avaliable items in sight.
According to eyewitness reports, the incident began earlier in the day when unidentified individuals stormed the premises of CBEX, which occupies a flour in the two storey building and carting away items in sight.
A viral video shows people carting away items from the building while bystanders watched in disbelief.
Residents of the area described the situation as chaotic, with some claiming that the looting began suddenly and escalated before security operatives could intervene.
“I was just coming back from the market when I saw people running into the building and carrying things out. It was like something out of a movie,” a local trader said.
Police Intervention
As the news of the looting spread, security operatives were mobilised to the scene to provide security of lives and property.
As at the time of this report the police have taken over the CBEX office complex in Ibadan to prevent further looting and damaging by enraged investors.
A Police source said the decision was taken in order to prevent looting of the equipment by the enraged investors.
Regulatory gaps
One of the investors, an entrepreneur who did not want his name in print said the CBEX saga is a pointer to the gaps in the areas of regulations in Nigeria’s financial sector.
Noting that the SEC has repeatedly warned about unregistered platforms, he said the Commissuon has not been doing more in enforcement.
He said the newly signed Investment and Securities Act (ISA) 2025 empowers the SEC to crack down on illicit schemes, but it’s too late for CBEX investors. He appealed to all regulatory bodies to as a matter of urgency bridge the gap between policy and enforcement to prevent future scams.
He also urged Nigerians to prioritize financial education and be cautious of schemes promising guaranteed returns
