CBEX: How Nigeria’s digital dream became nightmare
The CBEX logo with a Nigerian man in sorrow. Photo Credit- Nairaland
Nigeria’s digital trading community has yet again met its waterloo with many reeling from the alleged crash of CBEX, a once-promising cryptocurrency platform that had lured thousands with dreams of quick and easy wealth. Social media platforms like X buzz with panic, as users lament trapped funds and shattered hopes, while others still held on to faint glimmers of hope. A resurfaced prediction by Ub Edem Uman, warning of CBEX’s demise, now makes the shadow over an industry already marred by doubt to be more clear. As the fallout unfolds, this piece is set to explore the rise and fall of CBEX, its impact on Nigerian traders, and the broader implications for the country’s cryptocurrency space.
The rise of CBEX as a beacon of hope
CBEX emerged in early 2024 as a digital asset trading platform, promising Nigerians an accessible entry into the volatile world of cryptocurrency. Marketed as a local solution, it offered low fees, naira-based transactions, and lofty returns up to 30% monthly, according to early adopters. For a nation grappling with increasing inflation and a naira weakened to N1,532.94/$, CBEX appeared as a lifeline. Young traders and those ignorant of previous digital trading like the Ponzi Scheme, poured in savings, with the hope of cashing out millions. By March 2025, CBEX claimed over 500,000 users, riding a wave of hype fueled by social media influencers and aggressive marketing.
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The cracks that appeared to show the decline of CBEX
The first signs of trouble surfaced in early April 2025, when users reported withdrawal delays. Posts and comments on X showed users having difficulty in making transfers and withdrawals which gradually became a storm of complaints. Ub Edem Uman’s old Facebook post, resurfaced on Legit.ng on April 14, predicted CBEX wouldn’t survive past May, citing unsustainable returns and Ponzi-like traits. Cryptocurrency expert Kayode Olagunju, quoted in Punch, said similar and labeled CBEX a “ticking time bomb” due to its clandestine operations and lack of regulatory control.
By April 12, 2025, CBEX’s platform was inaccessible, with users greeted by error messages or blank screens. Social media erupted the more with claims of a crash, alleging that traders’ funds estimated at N10 billion were trapped. As reported on several media platforms, many believed CBEX had folded, with some users accusing the platform of an exit scam. Yet, voices of denial persisted on X claims that it is perhaps a technical glitch and that withdrawals cannot happen until later this week. Others just merely debunked it warning individuals to stop spreading fake news. Despite these assurances, the lack of communication from CBEX’s leadership fueled fears, leaving many traders in despair.
The aftermath of CBEX downfall
The alleged crash has hit Nigeria’s youth hard, especially in a country where over 60% live below the poverty line. For many like myself, who only felt CBEX was a gamble to escape economic hardship, but its collapse has made their struggles just the more difficult. Critics and financial experts still warned that Nigerians should be careful of quick-income platforms that could crash at any point. The emotional toll now on many investors can only be imagined. Social media posts reveals sleepless nights, broken trust, and a growing self-control towards digital platforms even to the safe ones.
CBEX’s downfall exposes Nigeria’s regulatory gap in the crypto and online space. The Securities and Exchange Commission (SEC) has struggled to oversee platforms like CBEX, which often operate in the cloud, beyond reach. According to expert like Kayode Olagunju, urged he government to “fish out the sponsors of these Ponzi platforms.” The collapse is just another chapter in the history of modern global scams like Bitconnect’s 2018 crash, where investors lost billions, providing a lesson to many Nigerians. With the naira-for-crude deal also faltering, economic instability compounds the crisis, leaving young Nigerians and those perceived to be ignorant as the vulnerable.
Conclusion
CBEX’s alleged crash stands as a crystal reminder of the risks in Nigeria’s unregulated crypto space. For thousands of Nigerians who made investments, the dream of financial freedom has turned into a nightmare of debt and doubt. For the government there is the need for stronger laws to regulate and protect citizens or risk further economic decline. Like NaijaHistory said it: “Another Ponzi bites the dust, and we’re left picking up the pieces.” Until accountability prevails, Nigeria’s digital dreamers must be careful, their faith in platforms like CBEX shattered by a crash that may have been inevitable.
