CBEX Exposed as Ponzi Scheme, Thousands in Nigeria Affected

Thousands of Nigerians have reportedly fallen victim to a large-scale investment fraud carried out by CBEX, a now-defunct digital asset trading platform that masqueraded as a legitimate global enterprise. Operating under the misleading name “China Beijing Equity Exchange,” CBEX lured investors with promises of extraordinary returns, only to freeze user accounts and disappear with their funds by April 2025.

The platform gained notoriety by falsely presenting itself as an affiliate of a well-known Chinese state-run financial institution. However, CBEX had no official connection to the legitimate China Beijing Equity Exchange. Instead, it adopted a classic Ponzi structure: users were enticed with guaranteed 100% returns within 30 days and encouraged to refer others in exchange for bonuses. In reality, new deposits were used to pay off earlier investors, creating a cycle that inevitably collapsed when incoming funds slowed.

CBEX further amplified its credibility through appearances on local media channels and promotional campaigns portraying it as a “poverty alleviation” tool. This strategy successfully attracted thousands of unsuspecting participants across Nigeria, many of whom committed large portions of their personal savings to the scheme.

Initial reports from Nigerian media estimated losses as high as ₦1.3 trillion, or roughly $800 million. The figure was allegedly based on blockchain data showing a large amount of funds associated with a specific Tron wallet, believed to be linked to the platform. However, further blockchain analysis suggested the wallet in question belonged to a mainstream crypto exchange and not CBEX, indicating that the actual losses might be considerably lower. Independent researchers now estimate the loss to be closer to $12 million, although the full extent remains unclear due to the lack of formal investigation results.

As panic set in, numerous users reported being unable to access their funds. CBEX quietly disabled withdrawals in early April, and its website and customer support channels went offline shortly after. Angry investors staged protests in cities such as Ibadan and Lagos, demanding accountability and the recovery of lost funds. Social media platforms were flooded with personal accounts of financial ruin, some involving life savings and education funds.

Local law enforcement has yet to confirm whether a criminal investigation is underway. Regulatory bodies in Nigeria have not released official statements regarding the platform, though pressure is mounting from victims for authorities to intervene.

The CBEX case serves as a harsh reminder of the risks involved in unregulated digital asset schemes, especially in emerging markets where financial literacy remains a challenge and enforcement mechanisms are limited. Despite warnings from global financial watchdogs about the dangers of high-yield investment programs, many users continue to fall prey to fraudsters exploiting the promise of fast profits and financial independence.

For affected users, prospects of recovery remain slim. Like many similar scams, CBEX operated without any regulatory oversight, making it difficult to track down those responsible or initiate legal proceedings. The platforms use of cryptocurrency further complicates restitution efforts, as the decentralized nature of digital assets often puts them beyond the reach of traditional legal frameworks.