Fraudulent digital investment platform that operated in Nigeria and Kenya, CryptoBank Exchange, CBEX, successfully established itself in Nigeria, with the help of citizens in both countries.
The scheme collapsed in April 2025, leaving thousands of investors unable to access their funds, with losses estimated at over ₦1.3 trillion (approximately $847 million).
Experts explore the likelihood of Nigerians falling into the next Ponzi scheme, and the analysis is shocking.
From MMM to CBEX — The Endless Loop of Ponzi Traps in Nigeria
CBEX was an unregistered, unregulated investment platform, the Securities and Exchange Commission (SEC) of Nigeria said.
The nature of most Ponzi schemes, like CBEX and its predecessors MMM and Elite Investment, is a promise of unrealistic returns of up to 100% within days. They lure investors with promises of high returns, and leverage social media and peer networks for promotion.
Regardless of the lessons learned from past Ponzi scheme incidents like MMM and Elite Investments, Nigerians were quick to jump on CBEX.
Prior to its collapse, the platform disabled withdrawals and demanded additional “verification” fees from users, exacerbating investor losses. The end of MMM also played out in a similar manner.
Each time there is a Ponzi scheme in Nigeria, there is always a group of foreign nationals collaborating with Nigerian partners. They establish offices in cities like Lagos, Ibadan, and Abuja and each time it ended in a significant loss of money and life savings.
The SEC had warned the public against investing in unregistered platforms like CBEX, emphasising the illegality of such operations under the newly enacted Investment and Securities Act (ISA) 2025.
Financial literacy that teaches people a more realistic approach to investment and earnings is unavailable, and many Nigerians will likely fall into future occurrences.
The CBEX incident serves as a stark reminder of the risks associated with unregulated investment platforms and the importance of due diligence before investing.