CBEX, a digital trading platform, has failed, affecting 300,000 investors with losses over N1.3 trillion. We look at five things you should know.
1. Too Good to Be True: CBEX promised investors 100% returns within 30 days by trading digital assets. It marketed itself as a secure and transparent investment hub.
2. Unregistered and Operating Illegally Despite widespread use, CBEX was never registered with Nigeria’s Securities and Exchange Commission (SEC).
3. Red Flags Before the Crash Prior to the collapse, CBEX showed red flags like withdrawal issues and demands for more deposits.
4. Massive Losses Tracked on Blockchain: Taiwo Owolabi, a crypto expert and security analyst, reported that stolen funds were traced to a Tron blockchain address
5. SEC's Ongoing Warnings Ignored The SEC had repeatedly warned the public against investing in unregistered platforms like CBEX.
SEC's warnings about unregistered platforms like CBEX were ignored by the public until the crash.