Nigerian investors blindsided by massive CBEX Ponzi scheme

Thousands of Nigerians person mislaid millions to a fraudulent integer plus trading platform, CBEX, which operated arsenic a Ponzi scheme.

Early reports from section media outlets placed full capitalist losses astatine ₦1.3 trillion (approximately $800 million), with the funds allegedly sitting successful a Tron wallet believed to beryllium associated with CBEX.

However, CryptoSlate’s investigation suggests the existent fig whitethorn beryllium importantly little arsenic the code belongs to Binance’s blistery wallet, contradicting speculation connected Nigerian societal media.

Independent crypto expert Specter offered a much blimpish estimate, placing the full nonaccomplishment person to $12 million.

CBEX Ponzi scam

CBEX, falsely branded arsenic “China Beijing Equity Exchange,” gained popularity successful Nigeria by presenting itself arsenic a morganatic planetary trading firm. In reality, the level had no affiliation with the authoritative Chinese entity bearing the aforesaid name.

Instead, CBEX followed a classical Ponzi exemplary of promising precocious profits, requiring referrals, and locking idiosyncratic funds. The steadfast lured investors by promoting an AI-driven trading strategy that would present a 100% instrumentality connected concern wrong 30 days.

The fraudulent level had besides gained credibility done promotional appearances connected state-owned media outlets wherever it had been deviously described arsenic a “poverty alleviation” scheme.

This drew successful respective investors who were encouraged to bring successful much radical earlier they could entree their returns. However, the withdrawals were taxable to lengthy lock-in periods, and by April 2025, idiosyncratic accounts were frozen without warning.

The abrupt halt connected withdrawals triggered wide backlash arsenic aggravated users stormed CBEX offices successful Ibadan and Lagos. Others took to societal media to stock stories of mislaid savings, immoderate successful the tens of thousands of dollars.

Scam connections widen beyond borders

CBEX’s illness appears to beryllium portion of a broader web of related scams.

Crypto expert Specter linked CBEX to different Ponzi schemes similar LWEX and PCEX, pointing to cloned websites and akin transaction patterns. LWEX, for instance, targeted users successful Slovakia and Hungary earlier shutting down earlier this month.

Specter’s investigations further revealed that wallets associated with CBEX were connected to Huione Pay, a outgo and speech strategy operating successful Southeast Asia.

Notably, blockchain forensics steadfast Elliptic has flagged Huione arsenic 1 of the largest hubs for illicit fiscal activity, reportedly processing implicit $24 cardinal successful fishy transactions. The level has been linked to pig butchering scams and quality trafficking tools.

The station Nigerian investors blindsided by monolithic CBEX Ponzi scheme appeared archetypal connected CryptoSlate.