CBEX Freeze Sparks Nigerian Outrage, Loss Fears Soar

Nigerians Panic as CBEX Investment Platform Freezes Accounts, Sparks Fears of Massive Financial Losses

A wave of panic and frustration has gripped Nigerians after users of the digital financial platform CBEX reported being locked out of their accounts, unable to withdraw funds. The situation has triggered fears of another large-scale financial scam, reminiscent of the infamous MMM Ponzi scheme that collapsed in Nigeria in 2016.

CBEX had drawn in thousands of users with the promise of extremely high returns—some investors were told they could double their money in a single month. In a country struggling with economic hardship and rising inflation, such promises were too tempting to ignore for many hoping to grow their savings or supplement their income.

Over the past few days, desperate investors have taken to social media platforms to share their experiences. Some posted emotional videos expressing deep anguish and frustration, worried they may have lost their life savings. One investor, Ola, told BBC Pidgin that he had 450,000 naira (around $280) invested and had been preparing to withdraw it—only to be met with account lockouts. Others claim to have lost as much as $16,000.

The situation escalated when, on Monday, users still found themselves unable to access their funds. Anger spilled into the streets in Ibadan, where enraged investors stormed a CBEX office, seizing furniture, air conditioners, and even a solar panel.

In private Telegram groups, some users received messages from CBEX claiming the platform had been hacked and assuring users that the issue would soon be resolved. However, the company has yet to make any public statement to address the growing concerns.

Meanwhile, Nigeria’s Securities and Exchange Commission (SEC) has not officially commented on the CBEX incident, although the agency has previously warned the public about the dangers of unregulated investment platforms and online Ponzi schemes.

The situation has drawn comparisons to MMM Nigeria, a notorious financial scheme that promised a 30% return on investments within 30 days and collapsed in 2016 after amassing nearly three million users. Many fear CBEX may follow the same path, leaving thousands in financial ruin.

As the public awaits official responses and potential legal action, Nigerians are once again reminded of the perils of trusting digital platforms that operate outside financial regulations, especially those offering returns that seem too good to be true.

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Source: BBC