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CBEX, a self-proclaimed digital asset trading platform, has collapsed, leaving thousands of investors across Nigeria and Kenya without their life savings. With promises of sky-high returns of 100% in just 30 days, CBEX quickly attracted a large following in the region, particularly preying on the economic hardships of many people. However, behind its enticing offers lay a sophisticated Ponzi scheme that ultimately led to the loss of over $800 million.
CBEX’s Sudden Collapse
CBEX’s sudden downfall occurred in early April 2025 when it blocked users from withdrawing their funds and disabled access to its official Telegram channel. In a desperate attempt to extract more money from victims, the platform began demanding a $100–$200 “verification” fee from users in exchange for a chance to recover their funds. This move raised alarm bells, as many investors realized they had fallen victim to a scam.
Prior to the collapse, CBEX had been promising a 30% return on investment within a month. However, many investors found themselves unable to access their funds when they tried to make withdrawals, with some left in disbelief as their accounts were suddenly locked. The tragic irony was evident in the case of one investor, Ola, who had been advised by a friend to wait before withdrawing their investment, only to lose everything when CBEX shut down.
The Scale of the Scam
The collapse of CBEX has been devastating, with reports suggesting that user funds vanished almost instantly after deposits were made. The Nation Online reported that the estimated damage from the scam was over 1.3 trillion Naira, equivalent to approximately $800 million. This colossal sum, stolen from unsuspecting investors, has drawn comparisons to the infamous MMM Ponzi scheme that caused a similar financial disaster in Nigeria back in 2016.
Despite suspicions about CBEX’s legitimacy, many people still joined, hoping to cash out early, only to be left with regret. The platform’s sudden shutdown has fueled widespread outrage, with some investors even resorting to protesting at CBEX’s offices, while others turned to social media to share their experiences.
How CBEX Operated
An in-depth investigation by independent researcher Specter uncovered the operations behind CBEX’s scheme. According to Specter’s report, CBEX used the TRON blockchain to route victims’ funds through a network of wallets, which were then converted into stablecoins like USDT or USDD. From there, the funds were moved to major exchanges such as OKX, Bitget, and HTX. By generating new wallet addresses for each user, CBEX was able to move money around, creating the illusion of legitimate trading.
The report also revealed that CBEX had employed a technique of delegating energy on the TRON network to avoid high transaction fees, making the process more difficult to trace. Through this complex web of transactions, investigators were able to track over $5.7 million in funds. However, the funds quickly disappeared as the scam unraveled.
Connections to Other Scams and Darknet Leaks
The investigation further exposed connections between CBEX and other large-scale fraud operations. CBEX appeared to be linked to Huione Pay, a money laundering network operating in Southeast Asia, and shared similarities with LWEX, a Ponzi scheme targeting Slovakia and Hungary. The platform also relied on scam website templates developed by a popular Telegram coder, Kehon8.
Moreover, user KYC data from CBEX may have been leaked to the darknet, raising serious concerns about the security of personal information. This breach adds another layer of risk to the already devastating fallout from the scam.
Conclusion
The CBEX collapse serves as a harsh reminder of the dangers of unregulated crypto investments. With a promise of quick returns and no clear regulatory oversight, platforms like CBEX prey on vulnerable investors, leading to financial devastation. As investigations continue, the full scale of the scam may yet be revealed, but for many victims in Nigeria and Kenya, the damage is already done.
