CBEX Ponzi Scheme Leaves Nigerian Investors With $12M Loss

Thousands of Nigerian investors have been left in financial ruin after falling victim to a massive Ponzi scheme orchestrated by the digital asset trading platform, CBEX. The fraudulent scheme, which falsely presented itself as the "China Beijing Equity Exchange," promised high returns on investment through an AI-driven trading strategy, luring unsuspecting investors with the promise of a 100% return within just 30 days.

CBEX gained traction in Nigeria by positioning itself as a legitimate international trading firm, even securing promotional appearances on state-owned media outlets where it was misleadingly described as a "poverty alleviation" scheme. This deception drew in a significant number of investors, many of whom were encouraged to bring in more people to access their returns. However, the platform implemented lengthy lock-in periods for withdrawals, and by April 2025, user accounts were abruptly frozen, leaving investors unable to access their funds.

The sudden halt on withdrawals sparked widespread outrage, with angry investors storming CBEX offices in Ibadan and Lagos. Many took to social media to share their stories of lost savings, with some reporting losses in the tens of thousands of dollars. Early reports from local media outlets estimated total investor losses at ₦1.3 trillion (approximately $800 million), with the funds allegedly sitting in a Tron wallet believed to be associated with CBEX. However, independent crypto analyst Specter offered a more conservative estimate, placing the total loss closer to $12 million.

CBEX's collapse is not an isolated incident but appears to be part of a broader network of related scams. Crypto analyst Specter linked CBEX to other Ponzi schemes like LWEX and PCEX, noting cloned websites and similar transaction patterns. LWEX, for example, targeted users in Slovakia and Hungary before shutting down earlier this month. Specter's investigations further revealed that wallets associated with CBEX were connected to Huione Pay, a payment and exchange system operating in Southeast Asia. Huione has been flagged by blockchain forensics firm Elliptic as one of the largest hubs for illicit financial activity, reportedly processing over $24 billion in suspect transactions. The platform has been linked to pig butchering scams and human trafficking tools.

This incident underscores the growing threat of digital asset fraud and the need for increased vigilance and regulation in the cryptocurrency space. Investors are urged to conduct thorough due diligence and be wary of platforms promising unrealistically high returns. The Nigerian authorities are expected to take swift action to address this fraud and protect investors from similar schemes in the future.