Lagos, April 15, 2025 — Hopes have turned into heartbreak for thousands of Nigerians who invested in CBEX, a cryptocurrency-based forex trading platform now exposed as a suspected Ponzi scheme.
Okikiola Abdul, a recent graduate of Ekiti State University, is among the victims. He invested $300 in March, enticed by CBEX’s promise of a 100% return in just 35 days. “In less than 35 days, I was supposed to receive $600,” Abdul said, hoping the payout would help him rent an apartment and complete personal projects.
Despite initial skepticism, Abdul was convinced by a close friend who had been earning from the platform for six months. But that dream crumbled swiftly.
The alarm was sounded by a popular X (formerly Twitter) user, Man of Letters (@Letter_to_Jack), on April 9, who called CBEX “a textbook Ponzi scheme.” The post went viral, garnering over a million views and sparking panic among investors.
“Someone told me about ‘CBEX’ this evening. They invested $1k and have since withdrawn $5k this year… The crash is imminent. It’s better to play bet,” the post read in part.
How the Scheme Worked
CBEX claimed to be a Singapore-based digital trading platform founded in 2015, offering crypto trading with AI-powered signals. Investors were promised 100% monthly returns with a minimum $100 investment. New users received a 10% sign-up bonus and 10% referral bonus for introducing others—a typical hallmark of Ponzi schemes.
Investors were added to Telegram groups and instructed to copy trading signals into the CBEX app. Payments and withdrawals were made in USDT, a popular cryptocurrency stablecoin.
Collapse and Aftermath
Shortly after the viral post, users began experiencing delays and then total suspension of withdrawals. On April 10, CBEX cited “system upgrades” and promised resumption by April 15.
But for Abdul and many others, balances were wiped out to zero. His $1,200 investment for a relative also vanished. CBEX allegedly locked its Telegram channels and introduced a “verification fee” system—$100 to unlock $1,000, or $200 for $2,000—another red flag.
The losses are staggering. According to a cryptocurrency expert, Taiwo Owolabi, over ₦1.3 trillion may have been lost, with at least $857 million USDT traced to a central wallet.
In Ibadan, angry investors stormed the CBEX office in Oke Ado, looting furniture and equipment, as seen in widely circulated videos.
Regulatory Response
The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against engaging with unregistered digital trading platforms. In a statement on Sunday, the SEC said the newly enacted Investments and Securities Act 2025 makes it illegal to operate online foreign exchange or digital asset trading platforms without registration.
“Operating a Ponzi scheme now carries a minimum penalty of ₦20 million and imprisonment of at least 10 years,” the agency said.
A Recurring Nightmare
CBEX is the latest in a long history of Ponzi schemes in Nigeria. The most infamous remains MMM (Mavrodi Mundial Moneybox), which crashed in 2016, leading to losses estimated at ₦18 billion. Despite CBN warnings, millions were lured in by its promise of 30% monthly returns.
As with MMM, CBEX investors ignored warning signs: unrealistic returns, lack of regulatory registration, and anonymous operators.
“I smiled at something on Instagram, then remembered I lost money to CBEX. I dropped from 100% to zero emotionally,” Abdul said.
With financial desperation still widespread, experts warn that similar schemes will continue to emerge unless investor education and regulatory enforcement are strengthened.
