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According to an alert memo issued by the Securities and Futures Commission (SFC) in Hong Kong, CBEX was not licensed to conduct digital trading in Japan or Canada—despite the company’s claims to the contrary.

Amid mounting outrage in Nigeria over the operations of CBEX Group, which resulted in significant financial losses for many, SaharaReporters has obtained a document revealing that authorities in Hong Kong had flagged the company’s fraudulent activities as early as 2024.

According to an alert memo issued by the Securities and Futures Commission (SFC) in Hong Kong, CBEX was not licensed to conduct digital trading in Japan or Canada—despite the company’s claims to the contrary.

The SFC is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.

“We derive our investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. Operationally independent of the Government of the Hong Kong Special Administrative Region, we are funded mainly by transaction levies and licensing fees,” it said on its website.

“The entity has adopted a name that is very similar to that of a property rights trading organisation based in China, when in fact they are not associated,” the memo said.

“While it purports to be a virtual asset trading platform and claims to hold a compliant digital asset license on its website, it does not, in fact, hold any relevant digital asset license in Canada—where it claims to be headquartered—or in Japan, where it claims to operate a digital asset trading platform.”

The report further noted that investors faced difficulties withdrawing virtual assets and alleged that CBEX misled users with fake withdrawal records.

“Investors reported difficulties with virtual asset withdrawals. The entity is suspected to have deceived investors with fake withdrawal records,” it added.

A review by SaharaReporters on Canada’s business registration portal showed that the closest registered entity to CBEX—CBEX Capital Corp—had its license revoked about a year ago.

Earlier, SaharaReporters reported that following the collapse of the CBEX platform, a group of enraged investors stormed and looted its office in the Oke-Ado area of Ibadan, Oyo State. The incident, which unfolded on Monday evening, saw a mob forcefully gain access to the premises and make away with furniture and office equipment.

Eyewitnesses said the chaos erupted after the platform abruptly crashed, wiping out user balances and rendering countless investments worthless.

In the wake of the collapse, devastated users flooded social media with posts expressing their anger and heartbreak, recounting stories of lost savings and dashed hopes.

In response to the crisis, Nigeria’s Securities and Exchange Commission (SEC) reiterated that any platform not registered with the SEC is considered illegal. During a virtual session with fintech stakeholders on Monday, SEC Director General Emomotimi Agama stated: “Recently, a post went viral concerning a certain platform and its activities. The fallout includes news of its closure and financial losses. I want to be very clear: if it is not registered, it is illegal.”

While he did not mention CBEX by name, the timing and context strongly suggest he was referring to the controversy.

On X (formerly Twitter), a user with the handle @mrsean_Okwute commented: “I’m just hearing the name CBEX. So Nigerians fell for another scam again? Now I understand why politicians have the nerve to do what they do. Some Nigerians really lack awareness.”

Another user, @Rukkie339, posted: “The streets are quiet—CBEX really did a number on investors. Never get involved in any investment promising 100% ROI. It’s a clear scam. Reach out to friends and family, console—don’t mock. It’s a tough time that leads to dark thoughts.”