CBEX Exposed as $12M Ponzi Scheme, Investors Lose Millions

The Nigerian digital asset exchange platform CBEX has been exposed as a Ponzi scheme, resulting in significant financial losses for a large number of investors. The total estimated loss is nearly $12 million, according to a conservative estimate provided by independent crypto analyst Specter.

CBEX operated under the guise of an AI quantitative strategy, promising investors a double return on their investments within 30 days. This enticing offer attracted numerous participants, who were encouraged to expand the customer base to earn commissions. This structure is characteristic of a Ponzi scheme, where early investors are paid with the funds from new investors, rather than from legitimate profits.

The platform was even promoted in Nigerian national media as a "poverty alleviation program," further misleading users into believing in its legitimacy. However, earlier this month, CBEX suddenly froze user accounts, preventing any withdrawals. This abrupt action led to protests from investors, who surrounded the company's offices in Ibadan and Lagos. Many victims also took to social media to expose the scam, sharing their experiences and warning others about the fraudulent nature of CBEX.

Independent analyst Specter has pointed out that CBEX is associated with other similar scams such as LWEX and PCEX. These platforms are suspected of sharing website architecture and fund flow patterns, suggesting a coordinated effort to deceive investors. The related wallets are also linked to the Southeast Asian payment system Huione Pay, which has been identified as a major hub for money laundering and telecom fraud, involving over $24 billion in suspicious transactions.

This incident highlights the risks associated with digital asset investments and the importance of thorough due diligence. Investors are advised to be cautious and verify the legitimacy of any investment platform before committing their funds. The exposure of CBEX as a Ponzi scheme serves as a stark reminder of the potential dangers lurking in the digital asset market, where promises of high returns often mask underlying fraudulent activities.