Nigerians have fallen victim to yet another Ponzi scheme, as CBEX, a digital investment platform, collapsed, taking over ₦1.3 trillion of investors’ money. The platform, which promised a 100% return within 30 days, launched in July 2024 and relied heavily on referrals with bonuses and tiered rewards to lure users.
A Familiar Pattern
CBEX’s promises mirrored previous scams like MMM, which affected over three million Nigerians in 2016-2017, and others such as Twinkas and Ultimate Cycler. The platform’s rapid growth raised concerns, with skeptics identifying it as a Ponzi scheme early on.
Online discussions about CBEX intensified after reports of users withdrawing unusually high returns. By April 11, users began complaining about withdrawal delays, fueling panic among investors. CBEX administrators dismissed these concerns as rumors, assuring users that withdrawals would resume on April 15.
The Collapse and Aftermath
On April 15, CBEX crashed, leaving investors unable to access their funds. Femi Azeez, an investor, reported losing over ₦3 million. The platform’s administrators locked its Telegram channels, restricted WhatsApp groups, and introduced a dubious verification fee requiring additional payments.
Videos and posts on social media showed angry investors storming CBEX offices in Ibadan and Lagos. Cryptocurrency expert Taiwo Owolabi revealed that stolen funds, amounting to $847 million in USDT, were traced to a TRX address. These funds were quickly converted to other cryptocurrencies, making recovery nearly impossible.
Regulatory Warning
The Securities and Exchange Commission (SEC) confirmed that CBEX operated illegally. Emomotimi Agama, the SEC’s director general, reiterated that unregistered platforms are unlawful under the Investment and Securities Act (ISA 2025). The new act enforces stricter penalties, including a 10-year jail term and a ₦40 million fine for Ponzi scheme operators.
Growing Financial Fraud Concerns
CBEX’s downfall adds to Nigeria’s long history of financial scams. According to the Nigeria Deposit Insurance Corporation (NDIC), Nigerians lost ₦911.45 billion to fraudulent activities over 23 years, with MMM alone accounting for ₦18 billion.
The CBEX collapse serves as a cautionary tale, emphasizing the importance of verifying investment platforms and adhering to regulatory guidelines to avoid financial losses.
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