CBEX Collapses: Crypto Ponzi Scheme Defrauds Nigerians of ₦1.3 Trillion, Triggers Nationwide Outrage
Lagos/Abuja | April 16, 2025 – IDNN Investigations Desk
What started as an enticing promise of 100% returns in 30 days has ended in tears, protests, arrests, and ₦1.3 trillion in losses, as CBEX, a supposed AI-powered cryptocurrency trading platform, has crashed, leaving thousands of Nigerians locked out of their accounts with no access to their funds.
The Ponzi scheme, which lured investors across Lagos, Ibadan, and other parts of the country, is now being investigated by Interpol and Nigeria’s Economic and Financial Crimes Commission (EFCC).
Too Good to Be True: How CBEX Operated
CBEX marketed itself as a Singapore-registered crypto exchange, claiming partnerships with AI trading platforms. It operated mainly through Telegram groups, where “trading signals” were shared with users instructed to mimic trades using the CBEX app.
The platform used a referral-based structure, offering 10% sign-up and referral bonuses, all paid in USDT, a stablecoin. Promising 100% ROI in 35 days, CBEX drew thousands—despite lacking registration with Nigeria’s Securities and Exchange Commission (SEC).
“I was supposed to get $600 from my $300 investment,” said Okikiola Abdul, a recent graduate from Ekiti State. “Now my balance reads zero. It’s like a nightmare.”
📉 The Crash: From Confidence to Chaos
The turning point came on April 9, when viral X user @Letter_to_Jack flagged CBEX as a Ponzi scheme. The tweet went viral, amassing over 1 million views, prompting a wave of investor withdrawals.
By April 10, users reported that withdrawals had been disabled, with the platform citing “system upgrades.” Panic set in as users’ wallets displayed $0 balances, while CBEX introduced a “verification unlock fee” — pay $200 to recover $2,000.
Offices Attacked in Lagos, Ibadan
On April 15, chaos erupted at the Egbeda-Idimu CBEX office in Lagos, as investors stormed the building. Police deployed to prevent looting, but several investors attempted to scale the fence, demanding answers and reimbursement.
Similarly, in Oke Ado, Ibadan, a CBEX office was looted, with crowds seen carting off computers, furniture, and air conditioners.
“I invested $500. My wife pushed me into it instead of using fixed deposits,” lamented Dele Aina, one of the protesters. “Now we’ve lost everything.”
The Damage: ₦1.3 Trillion Vanished
According to a crypto analyst, Taiwo Owolabi, CBEX funneled investor funds into a central wallet holding over $857 million USDT, approximately ₦1.3 trillion. None of this has been recovered.
Videos of women sobbing, youths screaming, and families devastated have flooded social media, drawing comparisons to MMM, the infamous 2016 Ponzi scheme that wiped out ₦18 billion and caused suicides.
“It’s MMM all over again,” one user wrote. “Only this time, it’s digital, faster, and more ruthless.”
SEC Reacts, New Law to Punish Crypto Fraudsters
The Securities and Exchange Commission (SEC) responded swiftly, invoking the newly enacted Investments and Securities Act 2025, which makes unregistered digital asset trading punishable by a minimum ₦20 million fine and up to 10 years in prison.
“It is illegal for any entity not registered by the Commission to operate a digital asset exchange or online foreign exchange trading platform in Nigeria,” the SEC warned.
Despite repeated warnings, many Nigerians were lured by referral bonuses, peer testimonials, and short-term profits, ignoring red flags such as lack of regulation, anonymous founders, and unsustainable ROI promises.
🧠 IDNN ANALYSIS: Why Nigerians Keep Falling for Ponzi Schemes
From MMM (2016) to CBEX (2025), one theme remains consistent: desperation, financial exclusion, and the hunger for quick wealth. In a country where unemployment and inflation are crushing realities, digital scams thrive under the illusion of financial empowerment.
Until digital literacy, regulation, and enforcement catch up, Nigerians will remain vulnerable to schemes that promise hope — and deliver heartbreak.