CBEX Review: Unmasking the Massive Nigeria Crypto Scam

CBEX Review: Unmasking the ₦1.3 Trillion “Click a Button” Ponzi Scheme – Legit or Scam?

Welcome, crypto enthusiasts and cautious investors, to another deep dive into the often-murky waters of digital finance. Here at CLEAR ANGLES, we pride ourselves on bringing you in-depth, unbiased reviews and insights into the world of cryptocurrency and blockchain technology. Today, we’re tackling a particularly troubling case that has sent shockwaves through Nigeria and beyond: the sudden collapse of CBEX. Was it a legitimate digital investment platform, or as many now fear, a massive Ponzi scheme that defrauded unsuspecting users of over ₦1.3 trillion? Let’s unravel this complex situation.

Why Is CBEX in the News?

The name CBEX has been on everyone’s lips lately, and for all the wrong reasons. On a seemingly ordinary Tuesday, the platform abruptly ceased operations, leaving a trail of devastated investors in its wake. Reports have since emerged detailing losses exceeding an astounding ₦1.3 trillion. The sheer scale of this financial catastrophe has understandably sparked widespread anger, frustration, and a desperate search for answers. You might have seen the news reports of affected users even storming the CBEX office in Oyo State, a physical manifestation of their shattered hopes.

The central question looming over this entire saga is simple yet crucial: was CBEX a legitimate investment opportunity gone wrong, or was it a meticulously crafted Ponzi scheme from the outset? The evidence emerging paints a concerning picture, hinting at the latter. Allegations of fake AI trading bots, promises of unbelievably high returns, and a business model heavily reliant on recruiting new members are all classic hallmarks of a Ponzi scheme. This review aims to dissect these claims, examine the available information, and ultimately help you understand the truth behind the CBEX debacle.

What Is CBEX?

CBEX presented itself as a cutting-edge global digital investment platform with a sophisticated edge. They claimed to leverage advanced Artificial Intelligence to trade cryptocurrencies, promising users significant and consistent profits. This narrative was designed to attract individuals looking for high-yield investment opportunities in the burgeoning crypto market.

Claimed Business Model & Services

The core of CBEX’s appeal lay in its promise of effortless wealth generation. Investors were told that smart AI trading bots would use their funds. These bots would trade all day to provide daily profits. This “click a button” method for quantitative trading promises easy income. It does not need any trading skills from the user.

Alleged AI Trading Bots & ROI Promises

CBEX dangled the carrot of incredibly lucrative returns, reportedly promising a fixed monthly return on investment of around 100% within just 30 days. Such astronomical figures should have immediately raised red flags for any seasoned investor. In finance, returns like this are not sustainable. They often happen in Ponzi schemes. In these schemes, early investors get paid with money from new investors. Crypto analysts see that the reported losses are large. They think the actual amount deposited was in the millions, not trillions. However, the effect on individual investors is still very serious.

Branding with “China Beijing Equity Exchange”

To improve its image, CBEX linked itself to a government-owned business in China. This business is the Beijing Equity Exchange. However, this claim was swiftly and unequivocally refuted by the genuine Beijing Equity Exchange itself. In a statement from 2024, they clearly denied any connection to CBEX. They also warned the public about the unauthorized use of their name. This act of blatant misrepresentation serves as a significant indicator of potentially fraudulent activities. As reported by Punch Newspapers, the real Beijing Equity Exchange had no connection whatsoever with CBEX and had even issued warnings about the theft of its name.

Also Read: Q-Research Review: The Click a Button Crypto Ponzi

CBEX Legitimacy:

The big question on everyone’s mind is whether CBEX was a real investment platform or just a clever scam to trick investors. The evidence we’ve gathered so far leans heavily towards the latter.

Is CBEX Legit or a Ponzi Scheme?

The operational model of CBEX bears the unmistakable hallmarks of a classic Ponzi scheme. The promised returns of 100% per month are not only unrealistic but mathematically impossible to sustain through genuine trading activities. Instead, the platform relied on a constant influx of new investors to pay off earlier ones. This unsustainable model is a key feature of a Ponzi scheme. This is a fake investment operation. It eventually fails when new money stops coming in, as sadly happened with CBEX. As Business Insider Africa reports, the platform’s reliance on new deposits to pay old investors is a key indicator of its Ponzi nature.  

Common Red Flags: Fake SEC, FinCEN, SFC Registrations

Adding to the suspicion surrounding CBEX’s legitimacy were its attempts to appear credible through the display of seemingly official documents. The platform touted registrations with the U.S. Financial Crimes Enforcement Network (FinCEN) and Canadian authorities. However, as investigations have revealed, these claims were misleading. While CBEX may have filed with FinCEN, this does not equate to an endorsement or verification of legitimacy. Similarly, no valid record of a CBEX firm existed in Canada. Nigeria’s Securities and Exchange Commission (SEC) stated that CBEX was never approved or registered with them. This is a clear violation of Nigerian law, as investment platforms must be registered. This lack of regulatory compliance is a major red flag, as highlighted by BBC Pidgin.  

Comparison with MMM, MBA Forex, and RackSterli

Sadly, the collapse of CBEX is not an isolated incident in Nigeria’s financial landscape. It reminds us of other famous Ponzi schemes like MMM, MBA Forex, and RackSterli. All of these promised high returns but left many investors with big losses. These comparisons remind us to be very careful with investment opportunities that seem too good to be true.

CBEX Withdrawal Issues & User Complaints

The first signs of trouble for CBEX investors began to emerge in early April 2025 when withdrawal requests started to slow down. This is a common tactic employed by Ponzi schemes as they near their inevitable collapse. As the flow of new money dwindles, the platform struggles to meet withdrawal demands from earlier investors.  

Why Users Can’t Withdraw Funds

The inability of CBEX users to access their funds is a direct consequence of the platform’s fraudulent business model. With no real underlying trading activities generating profit, the money simply isn’t there. The money from new investors was probably used to pay earlier investors. It may have also benefited the people running the scheme. When new members stopped joining, the whole system started to fall apart. This left current investors unable to get their “profits” or even their original money back.

$100–$200 Verification Fee Controversy

To delay withdrawals and get more money from users, CBEX added a “verification fee” of $100 or $200. This fee was presented as a necessary step to unlock user accounts and enable withdrawals. However, this was nothing more than a last-ditch scam tactic to extract more funds from already vulnerable investors. Legitimate platforms do not typically charge such exorbitant and unexpected fees for basic account access.

“Locked Accounts” & Phantom Wallet Balances

Many users reported their accounts being inexplicably locked, often coinciding with their attempts to withdraw funds. Simultaneously, some investors noticed discrepancies in their account balances, with reported profits potentially being inflated or even disappearing altogether. These actions further underscore the deceptive nature of CBEX’s operations, creating a facade of profitability while preventing users from actually accessing their money.  

How CBEX Operated Its Scam

Beyond the core Ponzi structure, CBEX employed various tactics to lure in and retain investors. These methods often played on psychological vulnerabilities and leveraged the power of social networks.  

Telegram Referral Groups & Social Media Hype

CBEX heavily relied on a referral system, incentivizing existing users to recruit new members by offering bonuses and commissions. This caused a viral marketing effect. People started promoting the platform to their friends and family. They often did this without fully understanding the risks involved. Telegram groups and other social media sites became popular for promoting CBEX. They were full of testimonials, some of which were likely fake, and promises of quick money.

Spoofed Trading Interfaces & Binance Hot Wallet Illusion

To maintain the illusion of legitimate cryptocurrency trading, CBEX presented users with fake charts and account balances. These interfaces were designed to mimic real trading platforms, showing fabricated profits and activity. Some reports said that CBEX routed withdrawals through a specific TRX wallet. This led some people to wrongly think it was connected to Binance, a real cryptocurrency exchange. This tactic aimed to create a false sense of security and association with a reputable platform.

CBEX Across Africa: Nigeria, Kenya & Beyond

Nigeria was the main base for operations and where most losses happened. However, the CBEX scam reached beyond its borders.

How CBEX Spread in Nigeria & Kenya

CBEX set up an office in Ibadan, Oyo State, Nigeria. They wanted to show that they are a serious and established company. From there, it aggressively targeted Nigerian investors, capitalizing on the desire for quick financial gains, particularly amongst the youth facing economic hardship. The referral system played a significant role in its rapid spread across the country. Reports show that CBEX was well-known in Kenya. Kenyan investors also became victims of the scheme.  

Reports of Ibadan Office Looting

The anger and frustration of CBEX investors were clear after the platform collapsed. As reported by BBC, angry users in Ibadan, Oyo State, stormed the CBEX office, looting and destroying property in a desperate outpouring of their distress. This incident underscores the profound financial and emotional toll that such scams can inflict on individuals and communities.

International Reach and Victim Testimonies

Nigeria and Kenya seem to be the most affected countries. However, CBEX may have also targeted investors in other areas. The claim of being a “global platform” may be true because of its reach. However, its main operations are in Nigeria. As investigations continue, more information about the international scope of the scam may emerge.

Also Read: Make Money with Bitcoin 2025 Top Ways to Earn Bitcoin Profits

Legal Action & Regulatory Warnings

The sheer scale of the CBEX fraud has prompted significant legal and regulatory responses.

SEC Nigeria Statements

Nigeria’s Securities and Exchange Commission (SEC) quickly restated its position against unregistered investment platforms. They confirmed that CBEX was never allowed to operate in the country. This shows how important it is for investors to check if an investment platform is real and follows the rules before giving them money.  

SFC Hong Kong Suspicious VATP Alert

Before the big collapse in April 2025, the Securities and Futures Commission (SFC) in Hong Kong warned about “CBEX Group.” In April 2024, they added it to their Suspicious Virtual Asset Trading Platforms (VATP) Alert List. This early warning sign, though perhaps not widely known in Nigeria, indicates that concerns about CBEX’s legitimacy had already been raised by international regulatory bodies.  

Is CBEX Under Investigation?

Yes, CBEX is currently under active investigation. After its collapse, Nigeria’s Economic and Financial Crimes Commission (EFCC) said it would work with international law enforcement. This includes agencies like Interpol and the FBI. They aim to find the people behind the scheme, even if they have fled abroad. This collaboration signifies the seriousness with which authorities are treating this case.  

How Much Did People Lose to CBEX?

The reported figure of over ₦1.3 trillion (equivalent to over $800 million) in losses is staggering. Some crypto experts think the real amount deposited could be lower. Still, the financial damage for individual investors is huge. Many people invested their life savings in CBEX. They hoped for high returns, but their investments disappeared overnight. As CryptoRank notes, the impact on Nigerian investors has been profound.  

Real Victim Stories

The statistics, while shocking, don’t fully capture the human cost of this scam. Behind the trillions of Naira lost are countless stories of individuals and families who have been financially ruined. These are people who trusted what appeared to be a legitimate platform, lured by the promise of a better financial future. Their experiences serve as a sobering reminder of the real-world consequences of investment fraud.

Will Users Get Their Money Back?

The unfortunate reality is that the chances of most CBEX investors recovering their lost funds are slim. Ponzi schemes are made to make money for their creators. Once the scheme falls apart, it is hard to trace and get the money back. The EFCC has promised to recover investors’ funds. However, this process may take a long time and be complicated. There is no guarantee that everyone will get all their money back.  

Recovery Options for CBEX Victims

If you lost money to CBEX, you should report it to the EFCC. Make sure to include any important documents. Staying informed about the progress of the investigation is also crucial. While recovering alone can be hard, working together and cooperating with law enforcement gives the best chance for recovery.

How to Report CBEX to Authorities (SEC, EFCC)

Victims of the CBEX scam should report it to the Economic and Financial Crimes Commission (EFCC) in Nigeria. They can also contact the Securities and Exchange Commission (SEC) to share information about the platform’s unregistered operation. Providing detailed information and any evidence related to their investments can aid the ongoing investigation.  

Crypto Asset Recovery and Blockchain Forensics

In some cases involving cryptocurrency scams, blockchain forensic analysis can help trace the movement of funds. However, the success of such efforts depends on the sophistication of the scammers and the methods they used to launder the ill-gotten gains. It remains to be seen whether such techniques will yield significant results in the CBEX case.  

Protecting Yourself From Similar Scams

The collapse of CBEX serves as a crucial learning opportunity for all investors, particularly those venturing into the world of cryptocurrency.

Red Flags to Watch in Future “Crypto Opportunities”

Be wary of investment platforms that promise unrealistically high returns, particularly those guaranteeing fixed monthly or daily profits. Furthermore, pressure to recruit new members should also be a major red flag, as it often indicates a Ponzi or pyramid scheme. Also, a lack of transparency about the company’s operations, team, and regulatory compliance should raise serious concerns. Therefore, always investigate thoroughly before committing your funds. Finally, remember that legitimate investments typically involve risk, and guaranteed, exceptionally high returns are often a sign of a scam.

The Importance of Due Diligence in Investments

Before investing in any platform, especially in the changing world of cryptocurrency, it is important to do careful research. Verify the platform’s registration with relevant regulatory bodies, research its team and track record, and be extremely skeptical of promises that seem too good to be true. Remember, if it sounds too good to be true, it probably is.

Understanding the Risks of “Get-Rich-Quick” Schemes

The allure of quick and easy wealth can be powerful, but it often blinds individuals to the inherent risks involved. Be cautious of any investment opportunity that promises rapid and effortless riches. Legitimate investments typically involve a degree of risk and rarely offer guaranteed high returns.

The Role of Regulatory Bodies in Protecting Investors

Regulatory bodies like the SEC play a vital role in protecting investors from fraudulent schemes. However, their effectiveness depends on investors reporting suspicious activities and on the authorities having the resources and legal framework to take swift action. Increased investor education and awareness are also crucial in preventing such scams from taking root.  

Staying Informed About Potential Financial Scams

Staying informed about the latest trends in financial scams and Ponzi schemes is essential for protecting yourself. Follow reputable financial news outlets, be wary of unsolicited investment offers, and educate yourself about the common tactics used by fraudsters.

Final Verdict

Based on the overwhelming evidence, including the unsustainable returns, the reliance on new investors to pay old ones, the fake registrations, and the eventual collapse that left countless users unable to withdraw their funds, it is clear that CBEX was, in all likelihood, a massive Ponzi scheme designed to defraud investors.

The CBEX saga serves as a stark reminder of the dangers of unregulated investment platforms and the importance of investor vigilance. It underscores the need for caution, thorough research, and a healthy dose of skepticism when evaluating any investment opportunity, especially those promising unusually high returns.

Also Read: Magic Newton Airdrop: Your Comprehensive Guide to Free Crypto

Related Scams to Be Aware Of

The tactics employed by CBEX are similar to those used by other Ponzi schemes that have plagued Nigeria and other countries. It’s crucial to be aware of these past scams to better identify potential frauds in the future. Some notable examples include:

• MMM Nigeria: A notorious Ponzi scheme that promised unrealistic returns and collapsed in 2016, leaving millions of Nigerians with losses.  
• PlusToken: An international cryptocurrency Ponzi scheme that defrauded investors of billions of dollars.  
• MBA Forex: A Nigerian forex trading platform that promised high returns and eventually collapsed, leading to significant losses for investors.
• RackSterli: Another Nigerian investment scheme that promised high returns through online advertising and also ended up defrauding its users. As BehindMLM (Puma Invest Review) and BehindMLM (TTK Review) highlight, the “click a button” model is a recurring theme in such scams.

By learning the signs of past scams, investors can protect themselves from similar schemes in the future. Here at CLEAR ANGLES, we remain committed to providing you with the information and insights you need to navigate the complex world of digital finance safely and responsibly. Stay alert, stay informed, and always remember: if an investment looks too good to be true, it probably is.