posted 15th April 2025
CBEX Collapse: Nigeria’s Latest Digital Scam Leaves Investors Reeling
Lagos, Nigeria – April 15, 2025 – Thousands of Nigerians are grappling with devastating financial losses following the abrupt collapse of CBEX, a digital asset trading platform that has allegedly vanished with over N1.3 trillion of investors’ funds. The platform, which promised an enticing 100% return on investment within 30 days, crashed on Monday, leaving users with empty digital wallets, frozen withdrawal options, and a trail of broken dreams.
CBEX’s downfall marks yet another chapter in Nigeria’s long history of financial scams, echoing the failures of notorious schemes like MMM Nigeria, MBA Forex, Twinkas, Ultimate Cycler, and Loom Nigeria. These Ponzi schemes similarly lured investors with promises of quick riches, only to collapse under the weight of their unsustainable models, leaving millions in financial ruin. The CBEX debacle, however, stands out for its scale and sophistication, exploiting the growing interest in digital assets to deceive a new generation of hopeful investors.
CBEX marketed itself as a secure and transparent platform for trading digital assets, drawing in users with a sleek but poorly designed website that mimicked reputable platforms like ByBit. Behind the facade, however, the platform operated without proper licensing and employed deceptive tactics to maintain an illusion of legitimacy. Reports indicate that user funds were siphoned almost immediately after deposit, funneled into a TRX (Tron) wallet, converted to USDT, and then to ETH. Meanwhile, investors were shown fake balances on their dashboards—artificially generated figures masquerading as AI-driven trading profits.
The platform’s operational model closely resembled a classic Ponzi scheme, using funds from new investors to simulate returns for earlier ones. To further conceal its troubles, CBEX allegedly displayed fake withdrawal records, creating the impression that funds were accessible when, in reality, users faced insurmountable barriers to retrieving their money.
A Desperate Ploy to Squeeze More Funds
Following the platform’s crash, CBEX introduced a so-called “verification” process, demanding $100 from users with balances below $1,000 and $200 from those with higher amounts. The platform claimed this fee would enable investors to recover their funds, but analysts have described it as a cynical attempt to extract more money from desperate victims. “This is a textbook scam tactic,” said financial analyst Chidi Okeke. “They dangle the hope of recovery to squeeze out a few more dollars, possibly to pay off a handful of users and maintain the illusion of credibility while the majority are left with nothing.”
The verification scheme has only deepened suspicions that CBEX was a coordinated fraud from the start. Investors, many of whom poured in life savings or borrowed funds, are now left with little recourse. “I invested N2 million, hoping to secure my family’s future,” said Aisha Ibrahim, a schoolteacher from Abuja. “Now, it’s all gone, and they’re asking for more money to ‘verify’ my account. It’s heartbreaking.”
A Painful Echo of Past Scams
The collapse of CBEX is a grim reminder of Nigeria’s vulnerability to financial scams, a problem that has persisted through schemes like MMM Nigeria, which defrauded millions in 2016, and MBA Forex, which collapsed in 2020 with over N171 billion in investor funds. Platforms like Twinkas, Ultimate Cycler, and Loom Nigeria followed a similar playbook, exploiting economic hardship and financial illiteracy to lure victims with promises of exponential returns. Each collapse left behind a trail of shattered lives, eroded trust, and calls for stronger regulatory oversight that have largely gone unheeded.
CBEX’s ability to operate without proper licensing underscores the gaps in Nigeria’s regulatory framework for digital platforms. “The absence of robust oversight allows these schemes to flourish,” said Ngozi Eke, a cybersecurity expert. “Nigerians are increasingly turning to digital investments, but without proper education and regulation, they remain easy prey for fraudsters.”
As investigations into CBEX’s operations begin, authorities are urging victims to report their losses to the Economic and Financial Crimes Commission (EFCC). However, recovering funds from such scams is notoriously difficult, especially when assets have been converted and moved across blockchain networks. The EFCC has yet to issue an official statement on the CBEX collapse, but pressure is mounting for swift action to hold those responsible accountable.
For now, the collapse of CBEX serves as a stark warning to Nigerians about the dangers of unregulated digital platforms promising unrealistic returns. As the nation mourns yet another financial catastrophe, the scars of MMM Nigeria, MBA Forex, Twinkas, Ultimate Cycler, and Loom Nigeria remain a haunting reminder: if it sounds too good to be true, it probably is.
