Thousands of Nigerians have fallen victim to a fraudulent digital asset trading platform known as CBEX, which operated as a Ponzi scheme. Reports from local media outlets initially suggested that investors had lost a staggering ₦1.3 trillion (approximately $800 million) to the platform, with funds supposedly held in a Tron wallet associated with CBEX. However, a closer analysis by CryptoSlate revealed that the actual losses may be significantly lower, as the wallet in question turned out to be linked to Binance’s hot wallet, contradicting earlier speculation on Nigerian social media. Independent crypto analyst Specter estimated the total losses to be closer to $12 million.
The CBEX Ponzi scam duped unsuspecting investors by masquerading as “China Beijing Equity Exchange,” a legitimate international trading firm. In reality, the platform had no connection to the official Chinese entity bearing the same name. CBEX employed a classic Ponzi scheme strategy, promising high returns, requiring referrals, and locking in user funds. The platform enticed investors with the promise of a 100% return on investment within 30 days using an AI-driven trading strategy. To add credibility, CBEX made promotional appearances on state-owned media outlets, where it was deceptively portrayed as a “poverty alleviation” scheme. Investors were encouraged to bring in more people before they could access their returns, but withdrawals were subject to prolonged lock-in periods. By April 2025, user accounts were frozen without warning, sparking outrage among investors who had lost their savings, some amounting to tens of thousands of dollars.
The collapse of CBEX appears to be part of a larger network of interconnected scams. Specter’s investigations revealed links between CBEX and other Ponzi schemes like LWEX and PCEX, citing cloned websites and similar transaction patterns. LWEX, which targeted users in Slovakia and Hungary, shuttered earlier this month. Wallets associated with CBEX were also found to be connected to Huione Pay, a payment and exchange system operating in Southeast Asia. Notably, blockchain forensics firm Elliptic flagged Huione as a major hub for illicit financial activities, processing over $24 billion in suspect transactions. The platform has been implicated in pig butchering scams and human trafficking operations.
Despite the devastating impact of the CBEX Ponzi scam on Nigerian investors, efforts are underway to uncover the full extent of the fraud and hold those responsible accountable. It serves as a stark reminder of the risks associated with unregulated digital asset trading platforms and the importance of conducting thorough due diligence before investing.