The Crypto Bridge Exchange (CBEX), a platform widely labeled as a Ponzi scheme, has reportedly resumed operations in Nigeria as of June 2025, following its collapse in April 2025, which left over 600,000 investors, predominantly Nigerians, with losses estimated between $6.1 million and $840 million. Initially launched in July 2024, CBEX lured investors with promises of 100% returns within 30 days, claiming to leverage AI-powered cryptocurrency trading through arbitrage across major exchanges like Binance and Coinbase. The platform’s sudden shutdown earlier this year, coupled with its unregistered status and fake credentials, sparked widespread outrage and prompted investigations by Nigeria’s Economic and Financial Crimes Commission (EFCC).
CBEX’s recent re-emergence has raised fresh concerns, as the platform now demands a $200 “verification fee” from existing investors to reactivate their accounts and access locked funds, with a reduced $100 fee for accounts holding less than $1,000. This move has been met with skepticism, with many investors and analysts suspecting it as a tactic to further exploit victims already reeling from significant financial losses. The EFCC, in collaboration with Interpol, has warned that such fees are likely a continuation of the scam, advising investors to avoid making payments and to report any demands to authorities.
The scheme’s operations were never registered with Nigeria’s Securities and Exchange Commission (SEC), violating the Investment and Securities Act 2025, which mandates registration for all investment platforms and imposes penalties, including up to seven years imprisonment or fines of at least N5 million for non-compliance. CBEX falsely claimed affiliations with reputable organizations like the Corporate Affairs Commission and international financial bodies, while its website displayed fabricated licenses and endorsements. Investors were drawn in by aggressive marketing on social media platforms like WhatsApp and Telegram, where CBEX operated groups to recruit and pressure users into higher investment tiers.
Victims of the April collapse reported being unable to withdraw funds, with CBEX citing “system upgrades” or “regulatory checks” before ceasing communication entirely. The platform’s founder, identified only as “Dr. Ken,” remains at large, with no verified details about their identity or location, though investigations suggest ties to offshore accounts. The EFCC has recovered a portion of the stolen funds, but officials caution that full recovery is unlikely due to the complexity of tracing cryptocurrency transactions across multiple jurisdictions.
Social media platforms have been flooded with posts from affected investors, many of whom share stories of losing life savings, with some reporting losses as high as $50,000. Public sentiment reflects distrust, with users labeling the verification fee as “a scam within a scam” and urging others to avoid engagement. The SEC has reiterated warnings against unregistered investment schemes, emphasizing the risks of platforms promising guaranteed high returns, especially those operating solely through social media or requiring upfront fees.
The EFCC’s ongoing investigation has led to the arrest of several low-level operatives linked to CBEX, though key figures remain elusive. Authorities are also probing similar platforms like Bitwest, Trade 24/7, and QFX, which employ comparable tactics and have been flagged as potential Ponzi schemes. Investors are advised to verify the legitimacy of any platform with the SEC and to report suspicious activities to the EFCC’s dedicated fraud hotline.
The CBEX saga underscores the growing prevalence of cryptocurrency-related scams in Nigeria, where economic challenges and limited financial literacy have made citizens vulnerable to high-risk schemes. The SEC has launched awareness campaigns to educate the public on identifying red flags, such as unrealistic return promises, lack of transparency, and pressure to recruit others. As investigations continue, the focus remains on recovering funds and preventing further victimization, though the path to justice remains fraught with challenges.
This development serves as a stark reminder of the dangers posed by unregulated investment platforms, particularly in the rapidly evolving cryptocurrency space. The EFCC and SEC are urging investors to exercise due diligence, verify platform credentials, and avoid schemes that demand additional payments to access existing funds. For those affected, the EFCC has set up a portal for reporting losses and submitting evidence to aid the investigation.
As the situation unfolds, the EFCC has promised regular updates on the investigation, while Interpol’s involvement signals potential international cooperation to track down the masterminds behind CBEX. For now, Nigerian investors are left grappling with the fallout, with many expressing frustration over the lack of immediate recourse. The case serves as a cautionary tale, emphasizing the importance of vigilance in an era where digital scams continue to evolve in sophistication and scale.
