CBEX — a supposed digital asset trading platform — now exposed as a scam that has wiped out millions in investor funds.
CBEX introduced itself as a Singapore-based platform launched in 2015, claiming to revolutionize crypto trading with AI-powered signals. Promising investors a 100% return in just one month, it attracted thousands across Nigeria using flashy marketing and aggressive referral bonuses.
Users deposited money using USDT, a popular crypto stablecoin. They joined Telegram groups, followed daily trading signals, and watched their digital balances grow — until it all came crashing down.
The Fall of CBEX
Trouble started when social media user @Letter_to_Jack raised red flags. Soon, withdrawals became impossible. By April 10, CBEX suspended all withdrawals, citing “system upgrades” and promised access by April 15. That promise was never fulfilled.
Victims reported seeing their balances wiped to zero. Others were told to pay “verification” fees — $100 to unlock $1,000 or $200 for $2,000. CBEX then locked its Telegram groups and shut down communications.
“I invested $1,200 on behalf of a relative,” said Mr. Abdul. “Now, our balance shows zero. We’ve lost everything.”
Government Response
Reacting swiftly, Nigeria’s Securities and Exchange Commission (SEC) issued a strong warning. It reminded the public that the new Investments and Securities Act 2025 criminalizes unregistered digital trading platforms. Offenders now face a fine of N20 million and at least 10 years in prison.
According to SEC, CBEX is not registered to operate in Nigeria. By law, any company offering online forex or crypto trading must register with the Commission.
Ponzi Playbook Repeated
CBEX mirrors earlier schemes like MMM, which crashed in 2016 after defrauding millions. These scams all share key traits: unsustainable high returns, lack of regulatory licenses, shady ownership, and deceptive marketing tactics.
CBEX added another layer of deception. The name “CBEX” is also linked to the China Beijing Equity Exchange, a legitimate Chinese government entity. Many Nigerians likely mistook the scam for a government-backed platform.
The Bigger Picture
Nigerians have long been vulnerable to Ponzi schemes. Economic pressure, unemployment, and poor financial literacy drive many to risky platforms. Despite repeated warnings, desperation keeps pushing people toward too-good-to-be-true investments.
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