Following announcements that an internal problem at CBEX has rendered many Nigerian investors unable to access their funds, social media has erupted with stories of financial distress. As customers express their frustration, regulatory bodies are reminded of past investment failures.
Nigerians Face Financial Crisis as Investment App Locks Users Out
Nigerians Face Financial Crisis as Investment App Locks Users Out
Users of the digital investment platform CBEX express outrage after being unable to access their accounts or withdraw funds amid indications of a cyber attack.
Angry Nigerians are taking to social media to voice their frustrations after being locked out of their accounts on the digital investment platform, CBEX. Videos of distressed customers crying over their inability to withdraw their funds have emerged online, highlighting fears of lost savings.
Reports indicate that a chaotic scene unfolded in the southwestern city of Ibadan, where frustrated clients vandalized a CBEX office, removing furniture and equipment. The company has yet to issue a public statement regarding the situation, which many attribute to a cybersecurity breach that allegedly prevented access to invested money.
Investors were drawn to CBEX due to its enticing promise of doubling investments every month, which appealed to many in Nigeria's current harsh economic climate. One affected investor, Ola, shared with BBC Pidgin that he feared losing 450,000 naira (approximately $280) after hesitating to withdraw on a friend's advice. Other investors have reported similarly devastating losses, including claims of up to $16,000.
The issue initially surfaced over the weekend, escalating in intensity as the inability to access funds continued into Monday. Some customers have reported receiving replies on Telegram stating that the problem stemmed from a hack and that resolutions were forthcoming.
The Nigerian Securities and Exchange Commission (SEC) has yet to respond to inquiries concerning the incident. However, it has previously cautioned the public about engaging with unregulated digital investment platforms and the risks of potential Ponzi schemes.
This current debacle brings to mind the infamous collapse of another investment program, MMM, back in 2016, when countless investors were left heartbroken after it froze transactions, vanishing with their savings. Investors had been promised a staggering 30% return on investments every month before the scheme went under, which reportedly had three million participants.
The unfolding situation with CBEX serves as a stark reminder to investors about the perils of high-risk ventures, particularly in an economy experiencing significant challenges.
