Chaos erupted in Oke-Ado, Ibadan, on Monday night as angry investors stormed the local office of CBEX, a digital asset trading platform, following the platform’s alleged crash.
The protesters looted the office and destroyed parts of the building in a dramatic display of frustration over frozen funds and plummeting investments.
The unrest comes amid mounting fears that CBEX may have been operating as a Ponzi scheme.
Investors reported being unable to withdraw their funds for several days, sparking widespread panic and outrage.
Social media platforms have been flooded with complaints and warnings about the platform’s collapse since last week, with many users alleging their savings had effectively vanished.
CBEX had promised users high returns on investments—up to 100% within a month—but concerns about its legitimacy intensified after reports of withdrawal freezes surfaced.
While some investors defended the platform, claiming withdrawals would resume by April 15, others warned of red flags reminiscent of past Ponzi schemes.
The Securities and Exchange Commission (SEC) confirmed that CBEX is not registered with the commission, labeling its operations illegal. SEC Director General Emomotimi Agama cautioned Nigerians against patronizing unregistered platforms during a virtual engagement on Monday.
“If it is not registered, it is illegal,” Agama said, indirectly referencing CBEX.
Eyewitnesses at the scene in Ibadan described the protest as chaotic. “People were shouting and breaking things; they took everything they could find,” said one resident who witnessed the incident.
Police were called to restore order but arrived after significant damage had already been done.
CBEX has denied allegations of collapse through its official social media accounts, insisting that operations are ongoing and withdrawals will soon resume.
However, these assurances have done little to quell investor anxiety. Financial experts have urged caution, emphasizing the risks associated with high-return investment schemes.
This incident underscores growing concerns about regulatory gaps in Nigeria’s financial ecosystem.
Experts have called for stricter oversight to prevent such incidents and protect investors from fraudulent schemes.