In Nigeria, an incident involving the digital asset platform CBEX occurred after it announced a suspension of withdrawals, leading users to find their account balances reduced to zero.
Withdrawal Problems on CBEX
Following the announcement of the withdrawal suspension on April 9, 2025, due to a 'security breach,' users noticed their balances plummeting to zero. Many traders reported having invested their life savings on the platform expecting a return.
Events at the CBEX Office
Angry traders stormed the CBEX office in Ibadan and began looting valuable items. Videos on social media showed people taking air conditioners and glass windows from the premises. Local residents expressed their distress over losing all their funds.
Regulatory Response
The Nigerian Securities and Exchange Commission warned citizens about the risks associated with unregulated investment platforms. SEC Director Emomotimi Agama remarked that CBEX was not registered and hence was operating illegally in the region. He also stated that SEC intends to close unlicensed platforms and prosecute those endorsing questionable schemes.
The events surrounding CBEX highlight the serious risks associated with investments in digital assets and the need for strict regulatory oversight in this area.
