Numerous Nigerian investors are reportedly facing significant financial losses following the alleged collapse of a digital asset trading platform known as CBEX. Reports circulating on social media indicate that approximately N1.3 trillion has seemingly vanished from investors’ accounts.

The digital trading platform reportedly crashed on Monday, with users discovering that the funds in their investment wallets had disappeared. CBEX has also reportedly locked its official Telegram channels and postponed withdrawals. In what appears to be a desperate attempt, the platform is allegedly offering investors a purported “lifeline” of $2,000 in exchange for a $200 verification fee and $1,000 for a $100 verification fee.

Cryptocurrency expert and security analyst, Taiwo Owolabi, analyzed the situation during an X (formerly Twitter) space organized by Trending X. According to Owolabi, available data suggests that investor funds were moved to a specific TRX address (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf). He estimates that a total volume of $847 million in USDT has been misappropriated so far, with the potential for this figure to increase.

Owolabi emphasized the bleak outlook for investors, stating that the invested funds are likely irretrievable due to CBEX operating without a proper license. He further explained that the platform’s website appeared to be a poorly designed imitation of ByBit, a legitimate trading platform.

“They designed the weak website to convince people in the future that it was a security breach that affected them. 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, then to ETH. So, when you are logging into your account, there is literally no money on your profile,” Owolabi stated.

He further described the alleged fraudulent mechanisms of the platform, claiming that displayed trading activities and AI-driven profits were fabricated. According to Owolabi, when users attempted to withdraw funds, they were often paid with money deposited by other unsuspecting investors, creating a Ponzi-like scheme.

CBEX is described as a digital trading asset platform that promised investors an exceptionally high Return On Investment (ROI) of 100 percent within 30 days. Its stated aim was to establish a secure and transparent environment for digital asset trading.

At this time, it appears highly unlikely that Nigerian investors will be able to recover their funds from the CBEX platform. Authorities are likely to face significant challenges in tracing and recovering the allegedly misappropriated assets, particularly given the use of cryptocurrency transactions.

Investors who have been affected by the alleged CBEX collapse are advised to:

• Gather all relevant documentation: This includes transaction records, account statements, and any communication with the platform.
• Report the incident to the appropriate authorities: This may include the Economic and Financial Crimes Commission (EFCC) in Nigeria and any relevant cybercrime units.
• Seek legal counsel: Legal professionals specializing in financial fraud and cryptocurrency can provide guidance on potential avenues for recourse.
• Share information with other affected investors: Collaboration can be crucial in gathering evidence and pursuing collective action.

This situation serves as a stark reminder of the significant risks associated with investing in unregulated digital asset platforms promising unrealistically high returns. Investors are strongly urged to conduct thorough due diligence and exercise extreme caution before entrusting their funds to such platforms.