CBEX: A Cautionary Tale of a Fraudulent Scheme in Nigeria

CBEX, a platform that promised Nigerians astronomical returns through AI-driven cryptocurrency trading, has emerged as a stark reminder of this truth. Marketed as a revolutionary investment opportunity, CBEX captivated thousands with claims of 100% returns in as little as 35 days. However, mounting evidence and user experiences suggest it operated as a fraudulent scheme, leaving countless Nigerians grappling with significant financial losses. For stakeholders, understanding how CBEX ensnared its victims and the broader implications of such scams is critical to fostering a safer financial ecosystem.

CBEX, or Crypto Bridge Exchange, positioned itself as a global crypto trading platform, purportedly founded in 2015 by an elusive figure named Tristan Soreau. Operating across regions like Singapore, Australia, and the U.S., it gained traction in Nigeria through aggressive marketing and a referral-based model. The platform enticed users with a minimum deposit of $100, promising daily profits of up to 2% via AI-powered trading bots that allegedly never lost. For those who recruited others, bonuses and enhanced trading signals awaited, with higher deposits unlocking “VIP” tiers and greater returns.

The appeal was irresistible in Nigeria, where economic challenges often drive individuals to seek alternative income streams. CBEX’s Telegram groups, managed by local promoters, buzzed with success stories, showcasing screenshots of hefty payouts. These narratives, combined with the platform’s polished website and claims of operating in over 130 countries, lent it an air of legitimacy. Yet, beneath the surface, red flags abounded: no verifiable regulatory approval, vague documentation, and an unrealistic guarantee of perpetual profits in the volatile crypto market.

The turning point came in early 2025, when CBEX abruptly restricted withdrawals, citing a “security breach.” Users were told to wait until April 15, 2025, for resolution, but many reported locked Telegram channels and unresponsive support. Some were even asked to deposit additional funds to “verify” their accounts—a classic tactic of fraudulent schemes to extract more money before collapsing. Social media platforms like X erupted with outrage, with users claiming losses ranging from hundreds to millions of dollars. One estimate suggested that over $935 million in Nigerian funds were trapped, with some likening CBEX to notorious Ponzi schemes like MMM.

The mechanics of CBEX’s fraud mirrored those of a Ponzi scheme. Early investors were likely paid with funds from new entrants, creating an illusion of profitability that fueled recruitment. The referral system incentivized users to rope in friends and family, amplifying the scheme’s reach. However, the absence of transparent trading records and the platform’s unregistered status with Nigeria’s Securities and Exchange Commission (SEC) raised suspicions. The SEC’s recent crackdown on unregistered digital platforms, bolstered by the Investment and Securities Act (ISA) 2025, underscored CBEX’s illegality, with warnings that such schemes often collapse when new investments dry up.

The fallout from CBEX’s collapse has been devastating. Many Nigerians invested life savings, borrowed funds, or staked their financial futures, drawn by the promise of escaping economic hardship. Reports surfaced of individuals losing up to $180,000, with some taking to the streets to protest outside CBEX’s purported offices. The emotional toll was equally severe, as trust in digital platforms eroded and communities fractured over unpaid referrals. On X, users expressed frustration not only with CBEX but also with local media, accused of promoting the platform without due diligence.

The scheme’s success in Nigeria can be attributed to several factors. Economic desperation made high-return promises alluring, while financial illiteracy left many unable to spot warning signs. CBEX’s use of local influencers and Telegram admins, who claimed insider knowledge, built false trust. Moreover, the platform’s timing—capitalizing on the global crypto boom—made it seem like a legitimate fintech venture, obscuring its fraudulent core.

CBEX’s saga offers critical insights for stakeholders in Nigeria’s financial sector:

Strengthen Regulatory Oversight: The SEC’s proactive stance is a start, but regulators must enhance monitoring of digital platforms and educate the public on verifying licenses. The ISA 2025’s penalties, including up to 10 years’ imprisonment for Ponzi operators, signal progress, but enforcement is key.

Promote Financial Literacy: Nigerians need accessible education on investment risks, particularly in crypto markets. Understanding that no platform can guarantee lossless trading could deter future scams.

Hold Media Accountable: Media outlets must vet platforms before offering endorsements. Blind promotion of schemes like CBEX fueled their spread, betraying public trust.

Encourage Investor Caution: Individuals must prioritize due diligence, researching regulatory status and questioning unrealistic returns. If it sounds too good to be true, it often is.

As CBEX fades into infamy, its legacy serves as a warning for Nigeria’s burgeoning digital economy. The SEC’s commitment to prosecuting illegal operators offers hope, but rebuilding trust requires collective action. Stakeholders—regulators, media, and investors—must collaborate to create a transparent, informed market where innovation thrives without exploitation. For Nigerians, the scars of CBEX may linger, but they also ignite a call for vigilance, ensuring that no one falls prey to the next glittering mirage.