How Big is Nigeria’s CBEX Crypto Exchange Collapse?

A $6 Million Scam or an $800 Million Ponzi?

On the surface, CBEX looked legitimate. It marketed itself as an artificial intelligence-powered cryptocurrency exchange, boasting official registration with the U.S. Treasury’s FinCEN and even displayed legal-looking documents signed by the Colorado Secretary of State. 

Despite lofty promises of a 100% return on investment in just 30 days, CBEX has recently collapsed. Thousands of Nigerian and Kenyan investors who bought into the scheme are now staring at zero balances, according to BBC Pidgin. Their money, like the platform’s website and Telegram groups, has disappeared.

The estimated loss? 

Techpoint Africa, after tracing blockchain wallets and smart contracts, says about $6.1 million flowed into the platform. Others, including The Nation Online, peg the figure closer to ₦1.3 trillion — that’s around $822 million. The truth likely lies somewhere in between. But even the lower figure reflects a painful, deliberate fraud.

The Setup: A Familiar Trap

CBEX started operations in Nigeria in 2024, blending two things that always attract attention — crypto and artificial intelligence. With slick marketing and endless social media campaigns, it promised quick returns and dollar-only investments. It also paid referral bonuses, a typical pyramid structure tactic.

For many Nigerians facing harsh economic conditions, CBEX seemed like an opportunity to escape financial strain. Instead, it became a digital trap.

Specter, a blockchain investigator, later exposed how CBEX moved deposits through a network of TRON-based wallets. The funds were converted to stablecoins like USDT and USDD, and then funneled into major exchanges like OKX, Bitget, and HTX.

One wallet alone received $3.2 million. Another held $1.9 million. By the time the scheme was exposed, most of the funds had vanished.

Investors Left With Nothing

The platform’s fall wasn’t gradual. It happened overnight. Users logged in to find their balances reset to zero. No customer support. No announcement. No explanation.

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Victims flooded TikTok, Facebook, and X with desperate videos. One man who lost ₦9 million recounted checking his account after a friend's warning. His balance had vanished. The Telegram group was flooded with angry messages. CBEX had gone dark.

In Ibadan, aggrieved investors stormed a local CBEX office. It was empty. No staff. No answers. Enraged, they looted furniture and electronics, an act born of sheer desperation.

Law enforcement arrived later. But by then, the damage was done.

SEC and EFCC Step In

Nigeria’s Economic and Financial Crimes Commission (EFCC) has launched an investigation, with plans to involve Interpol. The Securities and Exchange Commission (SEC) had already issued a public warning, urging citizens to avoid unregistered online trading platforms.

SEC Director Emomotimi Agama pointed to a “particular platform” operating illegally — clearly a reference to CBEX. He confirmed that the new 2025 Investment and Securities Act gives regulators power to shut down such schemes. Influencers and celebrities who promote them can also now face legal action.

The warning came just days before CBEX collapsed. Too late for many.

A Copy-Paste Ponzi

CBEX wasn’t new. It was recycled.

Investigators linked its platform design to Kehon8 — a Telegram coder who built scam site templates and has over 145,000 followers. CBEX’s backend resembled LWEX, a now-defunct scheme that targeted Eastern Europe. Both used the same structure, design, and payout system.

CBEX also had alleged ties to Huione Pay, a payment network known for laundering money in Southeast Asia. The entire operation was international, with Nigerian promoters acting as local agents.

One admin, Victor Aiguosatile Osamwende, was called out by Specter for threatening victims who demanded answers. Others who promoted CBEX have vanished from social media.

Why Did So Many Fall For It?

Because desperation breeds hope.

In a country battling unemployment, inflation, and a weakening currency, CBEX’s offer of monthly doubling returns looked like a miracle. The use of technical terms like “AI-powered trading” made it sound sophisticated. Its FinCEN registration gave it legitimacy.

CBEX didn't target financial experts. It targeted everyday Nigerians — small business owners, young professionals, retirees — all trying to make life a little easier. Many ignored the red flags, just as they had in 2016 with MMM, a similar Ponzi scheme that wiped out millions in savings.

The Real Cost

The numbers might differ, but the emotional damage is consistent. People lost life savings. Dreams were shattered. Some took out loans to invest. Others convinced family and friends to join.

The SEC has now committed to tightening its oversight. But the damage to public trust in cryptocurrency will linger. Platforms like CBEX feed into the growing distrust of blockchain technologies in Africa, even as many global firms push for adoption.

CBEX didn’t fail because of a market downturn. It was designed to collapse. It promised what no legitimate financial product can — guaranteed, rapid returns.

For Nigeria, CBEX is a painful reminder that in crypto, if it sounds too good to be true, it always is.