CBEX Crypto Collapse: ₦1.3 Trillion Ponzi Scheme Rocks Nigeria, Leaves 300,000 Investors in Ruins”

The origin of cbex

CBEX’s origins remain murky, but investigations and investor reports suggest that it emerged in early 2023 as a relatively obscure cryptocurrency trading platform that quickly gained traction through aggressive online marketing and word-of-mouth referrals. The platform was introduced to the Nigerian market via social media channels, WhatsApp groups, Telegram communities, and investment webinars where it positioned itself as a next-generation crypto firm leveraging artificial intelligence (AI) to deliver guaranteed high-yield returns. CBEX initially claimed to be headquartered in Canada and Japan—two countries with strong fintech reputations—which gave the impression of legitimacy. It also falsely claimed an affiliation with the China Beijing Equity Exchange (CBEX), a genuine Chinese government-backed institution that facilitates equity transactions. By hijacking this acronym and using similar branding, the fraudulent CBEX platform successfully misled investors into believing it was backed by an established, credible entity.

The platform’s early operations revolved around simple cryptocurrency trading interfaces that claimed to offer “AI-automated trading,” which supposedly analyzed market patterns and executed trades faster and more profitably than human traders. It promised users returns of up to 100% within 30 days, an offer that attracted both seasoned investors and novices alike, particularly in an economic climate where many Nigerians were seeking alternative income sources due to inflation and high unemployment.

In its early phase, CBEX allowed small, testable withdrawals to build trust. Many users reported that they were able to withdraw funds in the first few weeks or months of investment. This tactic—a hallmark of Ponzi schemes—created a false sense of legitimacy and encouraged reinvestment. It also fueled the growth of its referral-based recruitment model, where users earned bonuses or increased earnings by bringing in new investors. The more people you refer, the higher your return promises. CBEX’s online presence was sleek and professionally designed. It featured fabricated company documents, fake executive profiles, and unverifiable trade reports. The platform used sophisticated manipulation tactics, such as displaying fake transaction histories and doctored account dashboards, to create the illusion of a thriving and profitable system. By mid-to-late 2023, CBEX had embedded itself deeply within Nigeria’s crypto and investment circles, gaining hundreds of thousands of users, particularly in urban centers like Lagos, Ibadan, and Abuja. Its influence was particularly strong in local communities where “investment clubs” were formed, often with trusted local figures promoting CBEX as a reliable wealth-building tool.

The collapse of cbex

The collapse of CBEX, a cryptocurrency trading platform that lured hundreds of thousands of Nigerians with promises of massive returns through artificial intelligence-driven investments, has sent shockwaves across the country. With an estimated ₦1.3 trillion (approximately $840 million) lost by around 300,000 Nigerian investors, the scandal has become one of the largest financial frauds in Nigeria’s recent history.

CBEX attracted widespread attention and a growing user base by claiming to use sophisticated AI algorithms to guarantee 100% returns within 30 days. The platform marketed itself as a revolutionary financial technology hub, supposedly headquartered in Canada and Japan. However, these claims have since been debunked, as the platform operated without any recognized registration or regulatory approval in either country. In fact, CBEX falsely affiliated itself with the China Beijing Equity Exchange, using this misleading connection to boost its credibility and deflect scrutiny from unsuspecting investors.

The model CBEX employed was heavily reliant on a referral-based bonus system. Users were incentivized to bring in new investors, promising them generous commissions and higher earnings for expanding the network. This pyramid-like structure proved effective in pulling in large numbers of participants eager to benefit from the supposed AI-driven profits. But behind the scenes, the operation was far from legitimate. Red flags began emerging in April 2024 when the Hong Kong Securities and Futures Commission issued a warning flagging CBEX as a suspicious platform. This followed a stream of complaints from users who encountered difficulties withdrawing their funds. In some cases, investors reported receiving fake withdrawal confirmations while their actual funds remained inaccessible. These early warning signs, however, did little to slow the platform’s rapid growth in Nigeria.

The situation reached a breaking point on April 9, 2025, when CBEX suddenly suspended all withdrawals, citing a vague “security breach.” Just days later, on April 15, users discovered that their account balances had been wiped clean, plunging thousands into panic. The financial devastation, coupled with a sense of betrayal, led to public outrage. In Ibadan, Oyo State, angry investors stormed CBEX’s local office, looting office equipment and other valuables in a desperate bid to recoup their losses. The Nigerian Securities and Exchange Commission (SEC), alongside the Economic and Financial Crimes Commission (EFCC), has launched a full-scale investigation into the platform’s operations. Authorities have pledged to involve Interpol to assist in tracking down the operators of CBEX, many of whom are suspected to have fled Nigeria. Given the transnational nature of the fraud, global cooperation will be crucial in bringing the perpetrators to justice and possibly recovering stolen funds.