Published: April 16, 2025

In a shocking turn of events, thousands of Nigerians have been left devastated after the sudden collapse of CBEX, a so-called “AI-driven digital asset trading platform” that promised investors mouthwatering returns of 100% in just one month.

What started as an online buzz quickly turned into one of Nigeria’s most devastating financial scams, with over ₦1.3 trillion reportedly lost. As with many Ponzi schemes in the past like MMM, RackSterli, and MBA Forex – CBEX followed a similar pattern: flashy marketing, false promises, and then a swift disappearance when the money dried up.

But what can we learn from this? More importantly, how can you protect yourself and your loved ones from falling victim to such schemes?

What Was CBEX?

CBEX branded itself as a digital asset and crypto-trading platform powered by artificial intelligence. It operated without any registration from the Securities and Exchange Commission (SEC) and offered unrealistic investment returns. The company lured in thousands of Nigerians with the promise of doubling their capital in a matter of weeks.

By April 14, 2025, the platform had suddenly shut down. Users could no longer access their funds, and investigations revealed that the operators had transferred funds into a private Ethereum wallet, disappearing with investors’ money.

Red Flags You Should Always Watch Out For

Ponzi schemes don’t always wear the same mask, but they usually show the same signs. Here are some warning signals:

1. Unrealistic Returns: If an investment promises huge profits in a short time (e.g., 50-100% monthly), it’s likely a scam.
2. No Regulatory Approval: Always check with SEC or CBN to confirm if the company is registered and licensed.
3. Lack of Transparency: If you can’t clearly understand how a platform generates profits, stay away.
4. Pressure to Refer Others: Many Ponzi schemes reward users for bringing in new investors. This isn’t sustainable and often indicates a scam.
5. Shady Website or App: Poor website design, vague information, and missing contact details are red flags.

     How to Protect Yourself

• Do Your Research: Before investing, check if the company is registered with the SEC Nigeria or the Central Bank of Nigeria.
• Avoid Greed Traps: If it sounds too good to be true, it probably is.
• Ask Questions: Where is the money coming from? How is profit generated? Who are the founders?
• Watch for Reviews: A quick Google or X (Twitter) search can often reveal past complaints or warnings.
• Report Suspicious Platforms: If you suspect a scheme, report it to EFCC or SEC before more people are defrauded.

The CBEX crash is another painful reminder of the dangers of quick-money platforms. As Nigerians continue to seek financial stability in tough economic times, scammers will keep targeting the most vulnerable. But with awareness, due diligence, and critical thinking, we can fight back.

Don’t be the next victim.

Stay informed. Stay cautious. Share this post to help others.