Man Shares How CBEX Investors May Still Recover Their Funds, Explains 4 Steps to Take
- Amid fears and the panic of CryptoBridge Exchange (CBEX) investors about their trapped funds, a man has said there is still a window of hope for them
- The man, with knowledge about crypto and digital exchange platforms, detailed four steps CBEX investors could take to recover their money
- In an exclusive chat with Legit.ng, a Web3 analyst, Psalmy Edache, has shared his thoughts on the possibility of CBEX investors getting back their money
A Nigerian man, identified on TikTok as @cryptoevangelist11, said it is still very possible for CBEX investors to recover their funds despite the alleged crash of the digital investment platform, with funds of many Nigerians still trapped in it.
In an educative video he shared on TikTok, the man said that the unique nature of cryptocurrency offers a ray of hope for investors to get back their funds.
Source: TikTok
How CBEX reportedly received funds
According to @cryptoevangelist11, CBEX reportedly received funds from its victims via USDT, a cryptocurrency known as a stablecoin whose value is pegged to the US dollar.
He added that USDT is controlled by a company known as Tether, a cryptocurrency stablecoin pegged to the US dollar. In his words:
"It is possible for CBEX victims to recover their funds due to the unique nature of cryptocurrency. The CBEX platform reportedly received funds from their victims via USDT, and if you know anything about USDT, it is not as centralised as Bitcoin, Ethereum or another blockchain like Solana.
"It is controlled by a company called Tether. In the past, Tether has been known to freeze funds obtained by stolen USDT. They can also pause transactions, and they can also possibly return the USTD to the wallet of the people that sent the initial funds. It is very very possible. They've been known to do that."
Source: TikTok
How CBEX investors can recover their funds
The man highlighted four steps CBEX investors could take to get back their funds, which have been inaccessible since the digital investment platform blocked withdrawals.
He said the first step is to identify the wallet address that their funds were sent to and then file a report to Tether.
The man emphasised the need for victims to file a report to Tether using a law enforcement agency like the Economic and Financial Crimes Commission (EFCC) or the Nigerian police. All the steps he explained went thus:
"...And the ways in which victims can recover these funds is that they have to first be able to know the wallet address that these funds were sent to. CBEX obviously used a centralised wallet address. Just a simple wallet address...So, the transactions that are going to that single wallet can be traced and identified.
"The next step is for the victims to file a report to Tether, and the easiest way to file this report is by using a law enforcement agency. If it is Nigeria, you can use EFCC or the police. Police has a cybercrime unit that can help them facilitate this delivery of a message to Tether 'cause obviously Tether wouldn't want to work with individuals; they would want to work with agencies.
"And the next step is to collect all the transaction records, wallet addresses and screenshots. That should be the easiest part because all the transactions on blockchain can be identified and verified.
"So, if all the transactions are going towards that wallet that these CBEX guys have, it is easy for us to just put the wallet address on a blockchain scan or a tron scan or a USDT scan and we would see all the transactions that occurred on the blockchain.
"...And the next step is to obviously go in groups, and people complaining individually or singlehandedly is not going to work. If the CBEX victims can come together as a group, file this report to the EFCC. The EFCC can send a request to Tether and Tether would then help to see if those funds can be recoverable..."
He, however, feared that CBEX management paused withdrawals for days to give themselves ample time to transfer the funds to Monero, a privacy coin hard to trace.
The Securities and Exchange Commission (SEC) has also warned people against trading on unregistered platforms.
Efe Ebelo, head of external relations at SEC, told Legit.ng in a text:
"The Securities and Exchange Commission (SEC) has again emphasized that any platform not registered with the SEC is illegal and therefore warns Nigerians against patronizing unregistered platforms."
Web3 analyst speaks on CBEX investors' plight
Weighing in on the possibility of CBEX investors getting back their funds, a Web3 analyst, Psalmy Edache, told Legit.ng it is not feasible.
The Aptos blockchain ambassador explained why he said so.
"Normally, it's not possible, but if the money is sent from the wallet to a centralised exchange like Binance or Bybit, then those exchanges can freeze it.
"But if they (CBEX owners) are 'smart' and find other ways to 'wash the money,' then it's gone forever."
Watch the video below:
Man's advice to CBEX investors stirs reactions
De royalty said:
"You warned me bro but I did not hear now my eye don clear .. from today anytin u day is true bro."
Tonio said:
"Please don't try to involve police in that case because crypto is ban in Nigeria. so you involving the police will land you to another problem."
babatee38 said:
"You must be having a laugh. The money is gone forever."
Kaycee said:
"How will you help us what do we do now most of us don't know how to go about it."
FrankFerontech said:
"But you know that filing by EFCC might not work because crypto currency transactions is banned in Nigeria."
Gen. Oribatidmites said:
"You don even drop update for CBEX guys on what to do to make the money difficult to trace."
kcwise754 said:
"If EFCC put hand the money go fall out..,Make all the people wey loss money file report to EFCC this guy no lie."
In a related story, Legit.ng reported that an observant man had shared how CBEX mistakenly exposed itself before its reported crash.
Possibility of recovering funds lost to CBEX
Meanwhile, Legit.ng previously reported that an expert had opened up about the possibility of CBEX investors recovering their lost funds.
In an interview, web3 specialist Olayimika Oyebanji described the CBEX scheme as a scam hiding in plain sight. He stated that all the warning signs were there for the world to see, but those who fell victim were bound to ignore them. He noted that:
“The CBEX scam is the result not of the lack of regulations, but of the investors’ failure to carry out due diligence before investing in such a questionable scheme.”
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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
