There was pandemonium in the Oke Ado area of Ibadan, Oyo State, on Monday evening as aggrieved ‘investors’ of CBEX, a cryptocurrency trading platform, broke into and looted the office of its affiliate, Smart Treasure (ST Team), following the loss of access to their funds.
Viral videos circulating on social media showed angry individuals forcefully gaining entry into the premises and carting away office items, including air conditioners, furniture, and electronics.
Although the Oyo State Police Command has yet to issue an official statement on the incident, findings revealed that the unrest erupted after users could no longer access their investments, many of which were promised a 100 per cent return on investment.
The crisis reportedly began over the weekend when users started complaining of being unable to make withdrawals from their CBEX wallets. By Monday, frustrations boiled over into a mob action at the Ibadan office.
In a bid to calm tensions, CBEX, in a now widely-criticised video posted on its X page, urged users not to panic, stating that the company was working on “updates” to the platform.
However, the firm introduced a controversial new condition requiring users to deposit additional funds to verify their accounts before being eligible for compensation.
“To complete verification, users with account funds below or equal to $1,000 need to deposit $100,” CBEX stated.
“If account funds are above $1,000, users need to deposit $200. Until April 17, 23:59 (UK time), all withdrawal applications for accounts will be suspended.
“Once the compensation concludes, accounts meeting the trading volume requirements can withdraw normally,” it added.
The platform further threatened that any user who failed to complete the verification process before the deadline would be considered “fraudulent and permanently banned.”
CBEX assured that verified users would receive compensation within 24 hours of making the deposit and providing proof.
The incident has drawn sharp criticism, with many Nigerians comparing CBEX’s actions to classic Ponzi tactics. On March 15, the Economic and Financial Crimes Commission (EFCC) had issued a public alert listing 58 illegal investment platforms operating in Nigeria and warning citizens against patronising them.
Under the newly enacted Investments and Securities Act 2025, signed into law by President Bola Tinubu, operators of illegal investment schemes face a minimum fine of N20 million, a 10-year jail term, or both.
Meanwhile, several affected investors have called on the EFCC and relevant authorities to investigate CBEX, expressing fears that the verification requirement may be a ploy to exploit them further.
As of press time, it remains unclear how many people have been affected or how much was lost, but social media posts suggest hundreds may be involved.
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