CBEX Ponzi Scheme Collapse in Nigeria: What Happened and Lessons for Investors

The shocking collapse of CBEX, a digital asset trading platform falsely associated with China, has left a financial disaster in its wake, shaking the trust of thousands of Nigerian investors. The scheme, which promised unrealistic returns, operated under the classic hallmarks of a Ponzi scam, ultimately vanishing with millions of naira in user funds.

What Was CBEX?

CBEX, which stood for “China Beijing Equity Exchange,” claimed to use artificial intelligence for trading and offered investors a 100% return in 30 days. However, the name was misleading, there was no connection to any Chinese government entity. The company gained traction in Nigeria throughout 2024, targeting unsuspecting citizens with aggressive referral incentives and fake legitimacy.

Withdrawals were locked for over a month, and users had to refer others to access profits. Just before its disappearance, the platform introduced a “verification fee,” asking users to pay $100–$200 to unlock their supposed earnings. This final bait-and-switch wiped many accounts clean, and CBEX disabled withdrawals entirely in April 2025.

The Fallout

The financial damage is enormous. While the full scope is still unfolding, some estimates suggest the scheme may have swindled as much as ₦1.3 trillion. The Securities and Exchange Commission (SEC) has confirmed that CBEX was not a registered investment platform, rendering all operations illegal from inception.

The collapse has led to widespread outrage, with many victims struggling to recover. Some had invested their life savings, lured by the promise of high returns.

Ponzi Schemes on the Rise in Nigeria

CBEX is just one in a growing list of Ponzi scams targeting Nigerians. In March 2025 alone, the Economic and Financial Crimes Commission (EFCC) uncovered 58 illegal investment platforms, including names like AQM Capital, Wales Kingdom Capital, and Bethseida Group of Companies.

These companies operated without licenses from the SEC or the Central Bank of Nigeria (CBN), often using social media and influencers to promote their fraudulent schemes.

How to Spot and Avoid Ponzi Schemes

The CBEX collapse is a painful but crucial lesson. Here’s how to protect yourself:

• Verify Regulatory Approval: Always check if a platform is registered with SEC or CBN.

• Be Skeptical of Unrealistic Promises: High returns with little risk are a major red flag.

• Do Your Research: Investigate the company’s background, team, and business model.

• Avoid Pressure to Refer Others: Legitimate investments don’t require a pyramid of new members.

• Seek Professional Advice: Talk to licensed financial advisors before investing large sums.

Conclusion

The CBEX Ponzi scheme is a harsh reminder that in today’s digital world, fraud is becoming increasingly sophisticated. It’s a call to action for Nigerians to become more financially literate, for regulators to increase oversight, and for victims to seek justice. If it sounds too good to be true, it probably is.

Please be careful out there and invest wisely with enough research.