By Our Reporter
Following the sudden collapse of a cryptocurrency trading platform in Lagos State, where thousands of Nigerians reportedly lost millions of naira in life savings, the Federal Government has issued a stern warning to citizens to avoid unregistered investment schemes.
The platform, known as Crypto Bridge Exchange Smart-Treasures (CBEX), abruptly ceased operations, leaving thousands of investors stranded and in despair. CBEX, which claimed to use artificial intelligence for crypto trading, had promised 100% returns on dollar-denominated investments within 30 days — a promise that lured many into parting with their hard-earned money.
Chaos erupted over the weekend at the company’s office located in Egbeda-Idimu, a suburb of Lagos, as enraged investors besieged the premises, demanding refunds and threatening to destroy the building. The situation was eventually brought under control by officers of the Rapid Response Squad (RRS), who arrived at the scene around 10:00 am to maintain order.
The collapse reportedly began on Friday when users found themselves unable to access their CBEX accounts, sparking widespread panic and the realization that the platform had shut down operations.
In response, the Securities and Exchange Commission (SEC), through a statement, reiterated that under the newly enacted Investments and Securities Act, 2025, it is illegal for any entity to operate a digital asset exchange or online forex trading platform in Nigeria without proper registration.
The Commission emphasized its commitment to clamping down on illegal financial operators exploiting the digital space and urged Nigerians to exercise extreme caution when engaging with investment platforms promising unrealistic returns.
CBEX had projected an image of legitimacy, showcasing framed certificates purportedly from the Nigerian Stock Exchange (NSE) and the Economic and Financial Crimes Commission (EFCC) in its lavishly furnished office — a move that inspired confidence in many unsuspecting investors.
Authorities are currently investigating the operations of CBEX, and further regulatory action is expected in the coming days.