Nigerians react after losing N1.3 trillion to a scam cryptocurrency platform CBEX

The world of cryptocurrency is a wild frontier, brimming with opportunities for innovation but also rife with risks of deception.

CBEX, a platform that recently gained attention, has sparked heated debate among investors and analysts alike.

Promising a jaw-dropping 100% return on investment (ROI) in just 30 days through its AI-driven trading system, CBEX positioned itself as a game-changer for crypto enthusiasts.

However, beneath the glossy promises lies a troubling reality that suggests CBEX might not be the golden opportunity it claims to be—but rather a cleverly disguised Ponzi scheme designed to prey on hopeful investors.

Initially, CBEX seemed like a dream come true for many. It offered a user-friendly interface and delivered AI-powered trading signals, which made it appealing to both beginners and seasoned traders.

Some early users even praised its structured approach, claiming it provided clear trading opportunities twice a day via a Telegram group—one signal in the afternoon and another in the evening, Nigerian time. T

hese signals were marketed as foolproof, always resulting in profit. But anyone with even a basic understanding of crypto trading knows that no strategy can guarantee consistent profits in such a volatile market.

Losses are inevitable, and the promise of a 100% success rate is a glaring red flag that hints at something far more sinister.

A deeper dive into CBEX’s operations uncovers a disturbing lack of accountability. The platform reportedly encouraged users to deposit funds in TRX, the native token of the TRON blockchain.

Once deposited, these funds were quickly converted into USDT (Tether) and then into ETH (Ethereum), before being funneled into a private wallet.

According to reports, a staggering $822.8 million in user funds—equivalent to over ₦1.3 trillion—was moved into a single ETH wallet, leaving users’ account balances on the platform at zero.

What’s worse, these funds reportedly disappeared the moment they were deposited, not on the day of the platform’s publicized “crash.”

The numbers displayed on users’ dashboards were allegedly just that—numbers, with no real funds backing them.

This mirrors the tactics of infamous Ponzi schemes like the 1990s MMM scam, which defrauded millions by creating an illusion of wealth while siphoning funds behind the scenes.

CBEX’s next move further exposed its fraudulent nature. After locking withdrawals and shutting down its Telegram channels, the platform issued a dubious lifeline: users with balances of $1,000 or more were asked to pay an additional $200 for “verification,” while those with less than $1,000 were required to pay $100.

The stated purpose? To authenticate accounts following a supposed security breach, allowing users to withdraw their locked funds.

This tactic is a classic Ponzi scheme maneuver—using new deposits to pay off earlier investors, creating a vicious cycle that keeps the scam alive while draining victims of more money.

Security analysts, including Taiwo Owolabi, have pointed out that CBEX’s website was intentionally designed with minimal security measures, almost as if it was meant to fail.

The platform even mimicked the look of legitimate exchanges like ByBit to gain credibility, despite lacking any regulatory oversight or licensing.

The absence of regulation is perhaps the most damning aspect of CBEX.

Legitimate trading platforms are typically registered with financial authorities and adhere to strict compliance standards. CBEX, on the other hand, operated in a regulatory gray area, offering no proof of legitimacy.

Its promise of guaranteed AI-driven profits is another telltale sign of fraud—AI can assist with trading, but no technology can deliver 100% returns in such a short timeframe without significant risk.

The reality is harsh: the funds deposited into CBEX are likely gone for good, unless users are willing to pour more money into the “verification” fees, which would only perpetuate the cycle of deception.

For those considering CBEX or similar platforms, the lesson is clear: always conduct thorough research before investing.

Cryptocurrency trading is inherently risky, and platforms that promise guaranteed returns without transparency are often too good to be true.

CBEX’s story serves as a stark reminder to exercise caution, verify regulatory status, and avoid falling for the allure of quick riches in the crypto space.