Nigerians took to their various social media platforms to lament their losses after a digital asset trading platform, known as CBEX, allegedly swept over N1.3 trillion from investors’ accounts on Monday.
This comes as CBEX, operating without legal approval from
the Nigeria Securities Commission, crashed on Monday after the money in their
investors’ wallets vanished.
The digital platform also locked its Telegram channels and
postponed withdrawals while offering investors the option of $2,000 for $200
verification and $1,000 for $100 verification.
The development has sparked condemnations from Nigerians on
X.
Explaining the CBEX crash, cryptocurrency expert and
security analyst Taiwo Owolabi said the total volume of stolen investors’ funds
so far in USDT is $847 million and likely to increase.
Owolabi questioned why Nigerians would invest their money in
a digital platform that is unregistered by the SEC with the promise of a 100
percent return on investment.
“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, and then to ETH.
So, when you are logging into your account, there is literally no money on your
profile.
“What you see are just numbers. All the daily activities you
do to ‘trade’ increase your money. All the AI trading is fake. When it’s time
for withdrawal, they will send you another person’s money,” Owolabi explained
on an X space.
Similarly, Steve Fred, a user on X, wrote on Tuesday:
“Are we not just fantastically stupid in Nigeria?
“Nigerians are as gullible as their leaders. How many times
will they be scammed before they have sense?
“How can a company like ‘CBEX’ just appear from thin air and
promise you 100 percent ROI in 1 month, and you begin to invest?”
Another user, known on X as Oku, reacting to the CBEX crash,
said:
“The smaller the profit, the more I TRUST YOU.
“You have no business doing a business that promises you 50
percent to 100 percent ROI.”
The development comes after the SEC recently warned
Nigerians to stay clear of unregistered trading platforms.
The SEC particularly pointed out that, in accordance with
the ISA 2025 recently signed by President Bola Tinubu, it is now an offense for
any entity to operate an online forex trading platform or provide related
services without prior registration with the commission.
“By virtue of this act, it is an offense in Nigeria for any
entity that is not registered by the commission to carry out the business of
online foreign exchange trading platforms or related services.
“Any business entity planning to set up a business in any of
these areas is advised to visit the HOD DRM Department of the commission for
further direction on how to register with the commission to avoid sanctions,”
it added.
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