… Another Ponzi Scheme Collapses, Leaving Thousands of Nigerians Counting Losses
CBEX, a digital investment platform that launched in Nigeria in July 2024 with promises of astronomical returns, has reportedly crashed, wiping off over N1.3 trillion in investor funds within nine months. The platform now joins a notorious list of fraudulent schemes that have left Nigerians financially devastated, including the infamous MMM, Twinkas, Ultimate Cycler, and several others.
Promoted as a lucrative opportunity offering a 100% return on investment within 30 days, CBEX incentivised users to recruit others, offering referral bonuses and tiered rewards for building expansive networks. For many, it appeared to be the next big thing in the world of online investments — until the red flags became impossible to ignore.
Alarm bells began ringing on April 9 when a popular X user, known as “Man of Letters” (@Letter_to_Jack), posted about someone who reportedly turned a $1,000 investment into $5,000 in a short period. “Having done all my checks, the platform flies all the flags of a Ponzi scheme,” he warned.
By April 11, panic had set in. Numerous users took to social media to complain about being unable to withdraw funds. Yet, CBEX administrators in investor WhatsApp groups continued to dismiss the fears as baseless rumours, assuring users that withdrawals would resume by April 15.
However, by Monday, April 15, the platform had completely collapsed. “I lost over N3 million,” lamented one investor, Femi Azeez, in an interview with BusinessDay. Shortly after, CBEX locked its Telegram channels and restricted access to its WhatsApp groups. In a further twist, it introduced a so-called “verification fee,” asking desperate users to pay between $100 and $200 to supposedly unlock funds worth $1,000 to $2,000.
Social media was soon flooded with videos and images of aggrieved investors storming CBEX offices in Lagos and Ibadan, demanding answers and lamenting their losses.
In an X Space hosted by “Trending X,” cryptocurrency expert and security analyst Taiwo Owolabi revealed that the looted funds had been traced to a TRX wallet address, with total losses estimated at $847 million (approximately N1.3 trillion) — a figure that may still rise. Owolabi explained that the platform had been structured to mimic ByBit, a legitimate trading site, while being designed to mislead users.
“They created a vulnerable website to simulate a later ‘security breach’ narrative,” he said. “When investors made payments, the funds were immediately transferred from TRX wallets, converted into USDT, and later into Ethereum (ETH), leaving no actual funds in the user accounts.”
Further confirming the platform’s illegitimacy, the Securities and Exchange Commission (SEC) declared CBEX unregistered and illegal. Speaking at a virtual meeting with fintech stakeholders on the newly revised Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama stated:
“If it is not registered, it is illegal.”
Under the ISA 2025, operators of Ponzi schemes now face up to 10 years in prison and a fine of N40 million if convicted — a stiffer penalty aimed at curbing the alarming rise of such scams.
CBEX’s collapse is another painful reminder of Nigeria’s vulnerability to financial fraud. According to the Nigeria Deposit Insurance Corporation (NDIC), Nigerians have lost a staggering N911.45 billion to Ponzi schemes and related scams over the past 23 years. MMM alone was responsible for N18 billion of those losses.
