CBEX Collapse: An $800 Million Scam in Nigeria and Kenya

CBEX, a digital asset trading platform in Nigeria, has collapsed, revealing a Ponzi scheme that left thousands of investors without funds after promising unrealistic returns. The platform’s abrupt cease of withdrawals and imposition of a verification fee is under investigation, alongside its technical operations using blockchain. Significant financial losses are reported, with links to past scams and potential data security breaches.

CBEX, a digital asset trading platform, has been unveiled as one of the largest financial scams in Nigeria’s history, leaving thousands of investors in financial ruin. The platform attracted users by promising exorbitant returns of 100% in 30 days, exploiting economic difficulties in Nigeria and Kenya. However, beneath its appealing surface lay a Ponzi scheme designed to defraud its users.

In April 2025, CBEX abruptly collapsed, disabling withdrawals and shutting down its official support channels. Users were presented with a $100 to $200 ‘verification’ fee, a last-ditch tactic perceived as an attempt to siphon more money from desperate investors. Once promising a 30% return on investment in one month, many users are now unable to access their funds, fearing total loss.

Reports indicate that CBEX users in Nigeria expressed their discontent by storming one of the company’s offices, while others took to social media to share their stories of inaccessible accounts. Affected individuals, such as investor Ola, recounted missed opportunities to withdraw their funds prior to the collapse. Estimates suggest that the financial damage exceeds 1.3 trillion Naira (approximately $800 million).

CBEX’s operations have drawn parallels to Nigeria’s previous Ponzi scheme, MMM, which devastated countless savings in 2016. Despite suspicions about CBEX, many investors were drawn in by the potential for early withdrawal, ultimately leading to widespread financial loss.

An investigation by Specter revealed that CBEX employed the TRON blockchain to manage victims’ funds, routing them through a complex network of wallets. Funds were converted into USDT or USDD before being transferred to major exchanges such as OKX, Bitget, and HTX. Each new user was assigned a unique wallet address, while the platform utilised wallets to delegate ‘Energy’ required to minimise transaction costs before transferring funds.

Specter’s investigation cited that traceable amounts included $3.2 million that has declined significantly and $1.9 million across various exchanges. Furthermore, CBEX has been linked to Huione Pay, a suspected money laundering operation in Southeast Asia, and used scamming tactics founded by a popular Telegram coder. Key Nigerian Telegram admins have been implicated in promoting CBEX and threatening clients post-collapse. The investigation also hinted at connections to another Ponzi scheme, LWEX, targeting Slovakia and Hungary. Lastly, potential leaks of user KYC data to darknet platforms present serious concerns about the safety of personal information within the cryptocurrency sphere.