The Economic and Financial Crimes Commission (EFCC) has launched a full investigation into the collapse of CBEX, a digital investment platform accused of defrauding Nigerian investors of over N1.3 trillion.
The international criminal police agency INTERPOL is working with the commission to trace the perpetrators and recover diverted funds.
CBEX, which presented itself as a digital asset trading platform under the name CryptoBank Exchange, operated by promising investors returns of up to 100 percent within 30 days.
The platform used a referral-based model and marketed itself heavily across social media platforms, claiming to be linked with the China Beijing Equity Exchange.
The association was false and aimed at building credibility among unsuspecting Nigerians.
Investigations show that CBEX was never licensed by the Securities and Exchange Commission or the Central Bank of Nigeria.
The platform operated illegally using fake dashboards and manipulation techniques to convince users that their investments were growing.
By April 2025, CBEX had stopped processing withdrawals, leaving thousands of investors locked out of their accounts.
The scheme intensified its deception by asking users to pay additional verification fees ranging from $100 to $200 before any withdrawal could be processed. After these payments were made, the platform shut down entirely, wiping out investor balances.
EFCC confirmed that it had started tracking the platform before the final shutdown. With INTERPOL’s assistance the commission is tracing the flow of funds that were moved through various cryptocurrency wallets and exchanges.
Investigators believe a significant portion of investor money was converted to stablecoins like USDT and routed through international digital wallets.
The Securities and Exchange Commission has issued a public warning on the CBEX case and reminded Nigerians that any investment platform not registered with the Commission is operating illegally.
Under the new Investment and Securities Act of 2025, operating such a scheme is now a criminal offense with heavy penalties.
The CBEX collapse has triggered widespread outrage across the country, with affected investors taking to social media and public forums to share their experiences. Many were seen demanding for justice and restitution.
Several victims say they invested their life savings into the platform with the hope of attaining financial stability.
Authorities have reiterated the need for increased awareness and investor education. They advise Nigerians to verify the licensing status of any financial platform through the SEC or other regulators before committing capital.
The EFCC has assured the public that recovery efforts are ongoing. Where funds can be traced, they will be recovered. Where criminal activity is established, prosecutions will follow.
The commission also called on victims to formally report their losses through its official complaint channels.
The CBEX incident highlights the growing risk of unregulated investment schemes exploiting the popularity of digital assets in Nigeria. As crypto adoption grows, regulators and enforcement agencies are expected to increase scrutiny to prevent similar losses in the future.
