Nigerian digital financial platform CBEX is locked in an existential crisis. The company has now frozen all transactions, rendering millions of investors unable to access their accounts. The discussion platform that launched in November 2015 initially brought in about three million members. These users were tempted by irresistible offers promising guaranteed returns of up to 30%. Promissory notes pitched investors with guaranteed 30% return on their money within 30 days. They were lured by the money doubling every month!
Those issues really started to hit the fan over the weekend when CBEX members started noticing they were locked out of their accounts. Despite growing frustration over the weekend, the problem carried over to customers home on Monday, leaving many customers at the end of their ropes. Thousands of Americans expressed their concerns about the potential cuts. They were concerned about being locked out of their savings by a platform that had previously earned their confidence.
A mob of disgruntled customers besieged the CBEX head office in Ibadan. They stripped the place clean, taking chairs, air-conditioners, and even a solar panel. This case illustrates the wrath of people who believed they had made some sound investments. They now find themselves increasingly shut out of accessing their own money.
“I was ready to withdraw all my investment just last week but my friend told me to be patient and wait – and now it has crashed,” shared one distraught investor, Ola. His tale has echoed the experiences of hundreds of others stuck in a liminal state after the sudden transaction halt.
As an unregulated digital platform, CBEX’s existence has raised the eyebrows of financial regulators. The Nigeria Securities and Exchange Commission (SEC) has previously warned citizens about the risks associated with unregulated platforms like CBEX, cautioning them to remain vigilant against potential Ponzi schemes.
Battered by mounting investor pressure, the public now taking to community outrage to CBEX. However, CBEX has not published any formal statement regarding the troubling set of events. The lack of communication has only fueled speculation about the future of the platform and the security of its members’ investments.