While Nigerian investors dreamed of financial freedom, CBEX was quietly engineering one of the country’s largest cryptocurrency scams. For nine months, this unregistered platform promised the impossible: 100% returns in just 30 days. Seriously? Red flags everywhere. But people bought it anyway.
The numbers are staggering. Over 600,000 Nigerians lost a collective ₦1.3 trillion—approximately $12 million. That’s a lot of naira down the drain. These weren’t just gullible folks either. Victims came from all walks of life, all education levels. Using a hardware wallet could have protected investors from this type of centralized exchange scam by giving them full control of their private keys.
Over 600,000 Nigerians lost ₦1.3 trillion to CBEX—proving financial scams don’t discriminate by education or background.
Turns out a university degree doesn’t immunize you against greed. CBEX ran the classic Ponzi playbook. Early investors got paid with new investors’ money. Nigeria’s overreliance on offshore stablecoins has made its citizens particularly vulnerable to such schemes. Rinse, repeat, collapse. They plastered social media with fake endorsements and counterfeit licenses. Popular influencers hyped it up. Trust built. Money flowed in.
Then came the inevitable. Withdrawals became “problematic.” Now victims face a cruel twist—pay $100 more to maybe access 50% of their already-stolen money. Talk about adding insult to injury.
Nigeria’s Securities and Exchange Commission eventually declared CBEX illegal. Too little, too late. The Economic and Financial Crimes Commission launched investigations, but don’t hold your breath for refunds. The SEC admitted they were hamstrung because CBEX never registered in the first place. Convenient loophole.
This isn’t Nigeria’s first crypto rodeo. Since 2016, Nigerians have lost nearly N4.8 trillion to similar scams. That’s nearly $3 billion gone. Poof! The scheme was destined to fail as Ponzi schemes collapse when new investor recruitment slows down.
Despite being exposed, CBEX has the audacity to still operate, just with new “terms.” They’re rebranding, finding fresh ways to squeeze more money from desperate victims hoping to recover something, anything.
The whole fiasco underscores Nigeria’s desperate need for financial literacy and stronger regulations. But regulations only work when enforced. Meanwhile, scammers are crafting their next scheme. Different name, same game. The cycle continues while dreams of quick wealth turn to nightmares of empty bank accounts.
