1. CBEX is an Unlicensed Platform
CBEX operated without any official registration in Nigeria or Canada, despite falsely claiming to be headquartered in Canada. Investigations revealed no legitimate records of the company in Canadian business directories.
2. Massive Financial Losses
The platform allegedly drained over ₦1.3 trillion (approximately $809 million) from investors’ accounts, leaving thousands in financial distress.
3. False Promises of High Returns
CBEX lured investors with promises of 100% returns on investments within 30 days—a classic hallmark of Ponzi schemes.
4. Impersonation of Legitimate Entities
The platform mimicked the name and branding of the legitimate China Beijing Equity Exchange (CBEX), misleading investors into believing it had government backing.
5. Withdrawal Restrictions and Penalties
Investors faced strict conditions, including a 40-45 day lock-in period and penalties for early withdrawals. Some users reported being required to recruit at least 12 referrals before accessing their profits.
6. Deceptive Verification Fees
After freezing withdrawals, CBEX introduced a “verification” process, demanding additional payments of $100 or $200 from users under the guise of account verification.
7. Aggressive Referral Schemes
CBEX employed a multi-level marketing model, incentivizing users to recruit others with promises of escalating rewards, thereby expanding its user base rapidly.
8. Ignored Regulatory Warnings
In April 2024, Hong Kong’s Securities and Futures Commission warned the public about CBEX’s fraudulent activities. Unfortunately, many Nigerian investors overlooked these warnings.
9. Social Media Manipulation
CBEX showcased falsified withdrawal records on its platform to create an illusion of legitimacy and success, deceiving users into believing that others were profiting.
10. Public Outrage and Office Raids
Following the platform’s collapse, enraged investors stormed CBEX offices in Ibadan and Lagos, looting furniture and equipment in protest of their losses.
Stay Informed and Vigilant
The CBEX saga serves as a stark reminder of the importance of due diligence before investing. Always verify the legitimacy of investment platforms and be wary of schemes promising unrealistic returns.