CBEX Collapse: Nigeria and Kenya’s $800 Million Crypto Scam

CBEX, a digital trading platform in Nigeria and Kenya, has collapsed, leaving thousands of investors with massive losses in a Ponzi scheme estimated at $800 million. Promising unrealistic returns, CBEX disabled withdrawals in a last-ditch attempt to extract more fees from users, while investigations unveiled complex financial fraud using the TRON blockchain. This case draws parallels with the notorious MMM scheme of 2016, aggravating existing concerns about investor security and personal data breach.

CBEX, a self-proclaimed digital asset trading platform, has become notorious as one of the largest financial scams in Nigeria, impacting numerous investors. It promised extraordinary returns of 100% in just 30 days, subsequently luring users primarily from Nigeria and Kenya amidst economic difficulties, while operating under a facade of legitimacy as a sophisticated Ponzi scheme.

The unexpected collapse of CBEX occurred in early April 2025 when the platform disabled withdrawals, halted its official communication channels, and introduced a dubious “verification” fee ranging from $100 to $200. This move was perceived as a last effort to extort more funds from desperate users, many of whom now face the grim reality of potentially losing their investments.

Reports indicated that frustrated customers resorted to storming a CBEX office in Ibadan, Nigeria. Many took to social media to express their distress, detailing how their accounts had been locked and joining together in shared disappointment. Investors shared heartrending stories, with some stating regret about waiting too long for withdrawals.

The Nation Online documented that users’ funds disappeared almost immediately after deposits, indicating that consumers never truly possessed or could access the digital assets they believed they were trading. The financial impact was projected at over 1.3 trillion Naira, equating to approximately $800 million, marking a severe loss for thousands.

Similarities have arisen between the CBEX incident and the infamous MMM Ponzi scheme that wreaked havoc in Nigeria in 2016, resulting in substantial financial ruin for many. Despite apprehensions, numerous participants opted in, hoping to exit with profits, but most were ultimately bereft of their investments and laden with regret.

An independent investigation by Specter shed light on CBEX’s operational mechanisms. It was found that CBEX utilised the TRON blockchain to transfer victims’ funds across various wallets, converting the money into recognised cryptocurrencies before routing it to major exchanges such as OKX, Bitget, and HTX.

Specter detailed how CBEX created new wallet addresses for each user, with deposited funds immediately transferred to additional wallets. TRON helped reduce transaction fees, allowing CBEX to manage multiple wallets optimally. Investigations unveiled a significant wallet exchange activity, tracking multi-million-dollar movements involving substantial funds.

Additionally, links emerged between CBEX and Huione Pay, a known money laundering organisation based in Southeast Asia. The platform also utilised scam website templates prepared by a Telegram coder. Several local Telegram admins, including Victor Aiguosatile Osamwende, face allegations of promoting CBEX and threatening victims post-collapse. The investigation further revealed connections to another Ponzi scheme in Europe, flagging an alarming pattern in their operations.

Complicating matters, there are fears that the personal KYC data from CBEX users may have been breached, appearing in the darknet. Concerns surrounding information security are paramount, demonstrating the gravity of the CBEX incident and its implications for both trust in digital asset trading platforms and the safety of investor data.