PANews reported on April 16 that according to CryptoSlate, thousands of Nigerians were defrauded of millions of dollars by the fraudulent digital asset trading platform CBEX, which operated on a Ponzi scheme model. Local media previously reported that investors' total losses reached 1.3 trillion naira (approximately $800 million), but analysis suggests the actual losses may be far lower, as the address belongs to Binance's hot wallet, contrary to Nigerian social media speculation. Independent analyst Specter estimates the total losses are close to $12 million. CBEX promised high returns, required referrals, and locked funds, promoting an AI trading strategy claiming 100% returns within 30 days. The platform gained credibility by appearing in national media, packaged as a "poverty alleviation" plan, attracting many investors who were encouraged to bring in more people, but faced lengthy withdrawal lock-up periods. In April 2025, user accounts were suddenly frozen, and withdrawal stops triggered a backlash, with angry users flooding their offices in Ibadan and Lagos, with some sharing stories of losing tens of thousands of dollars online.
CBEX's collapse appears to be part of a broader fraud network. Analyst Specter linked it to Ponzi schemes like LWEX and PCEX, noting cloned websites and similar patterns. Wallets associated with CBEX are connected to Southeast Asian payment exchange systems and the illegal financial activities center Huione Pay. Previously, the Hong Kong Securities and Futures Commission warned the public about the CBEX group's suspected virtual asset-related fraud.
