The collapse of the latest fraudulent Ponzi scheme, Crypto Bridge Exchange, popularly known by its acronym, CBEX, and sheer stonkingness of the consequential losses, have again revealed the venal instincts in many a Nigerian.
Indeed, Nigerians continue to expose themselves to international odium by their uncanny predilection for easy money, no matter the circumstances. Unconscionable promoters continue to inundate the country, mostly from abroad, with all kinds of fraudulent Ponzi schemes and succeed in fleecing our people with relative ease because they understand the average Nigerian’s gullibility and his or her obsession for easy advantage, almost to a psychopathological level.
These smart alecs offer usually quite unreasonable returns on investments, implausible margins that beam with red flags, even from the start. Yet, Nigerians are too blind or rather insouciant to those intrinsic red flags once they are hoodwinked with initial ‘handouts’ by the vile promoters until they are trapped and their investments vanish. It is such a wizz!
What Nigerians lost to the fraud perpetrated by CBEX, which presented itself as a cryptocurrency trading platform, appeared to be the biggest haul so far in a single Ponzi scheme. Over 600,000 Nigerians were said to have fallen to the sleazy dragnet smartly woven by CBEX, which allegedly offered 100 per cent profit on investments within 30 days of purported AI trading, and lost a cumulative N1.3 trillion to the fraudulent trading deal.
A report revealed why CBEX was able to deceive many notable victims to invest in their scheme and rake in that humongous amount within a very short period of less than a year. According to the report, the promoters cleverly registered their firm with both Corporate Affairs Commission (CAC) on September 25, 2024 and the Special Control Unit Against Money Laundering of the Economic and Financial Crimes Commission (EFCC) on January 16, 2025.
They, however, did not register with the Security and Exchange Commission(SEC) and circumvented the law by registering with the CAC and EFCC as ST Technologies International Limited, while they operated as Crypto Bridge Exchange. It was the CAC and EFCC registration certificates, which they flaunted and marketed, that deceived most of their unsuspecting victims who thought they were legitimate.
The promoters, who are Nigerians probably based in the United Kingdom, also allegedly engaged in charity, hospital outreaches, paying hospital bills of people a veil to hide their fraudulent investment deals.
According to a financial expert, who analysed the CBEX palaver, the promoters gained traction through aggressive online promotions and operated with a referral-based model that rewarded users for bringing in others. They claimed to use advanced crypto trading algorithms but provided no verifiable proof of actual trading activities. CBEX was formally launched in July, 2024 and by this month (April, 2025), the cookey had crumbled.
He said the whiff of trouble about CBEX showed last Monday when users began to experience difficulties withdrawing funds. Shortly afterward, according to him, the platform became completely inaccessible. CBEX provided no warning, and its administrators became unreachable.
The financial analyst identified six key red flags that ought to have warned the victims that CBEX was a fraudulent scheme. They included promises of guaranteed daily/weekly unrealistic returns; referral-based incentives (emphasis on recruiting others for higher earnings); lack of transparency (no identifiable team, no registration with financial regulators); no tangible investment activity (vague or unverifiable trading strategies) and no customer support, especially during withdrawal issues.
The backlash of the losses to the CBEX misadventure has been devastating. From roadside traders, undergraduates to middle class investors, the victims are seething in turmoil. They are telling heart-rending tales, rueing having to walk on the tawdry path to financial abyss. Many of them actually lost life savings to the seamy transactions. They have been inconsolable and irascible. Many have landed in hospitals.
The EFCC, complemented by the Interpol, is already hunting for the CBEX promoters. The SEC has also commenced investigations into their operations. However, for the victims, it is still a long road to consolation and relief because while EFCC has assured them that their losses would be recouped, the SEC said nothing could be done about that.
This is not the first time that Nigerians will be fleeced through financial vampires called Ponzi scheme operators. The CBEX is a sleaze in a long chain. It is thus disconcerting that Nigerians could still fall for the CBEX deceit. According to a 2022 report of the Nigeria Deposit Insurance Corporation (NDIC), Nigerians have lost over N911.45 billion to Ponzi schemes and related frauds in the last 23 years.
Nigerians lost N18billion to the Mavrodi Mundial Moneybox (MMM), a Russian company, the most infamous among them, which promised 30 per cent monthly return. It attracted over three million Nigerians before it crashed in December, 2016. CBEX, however, rubbished that record in less than one year. Ultimate Cycler, another Ponzi scheme, which followed MMM, promised a 400 per cent return on investments. But it crashed abruptly, leaving users stranded.
Other Ponzi schemes, which have equally left Nigerians badly bruised, include Twinkas, D9 Club, MBA Forex Trading and Capital Investment Limited, Famchi Interbiz, Brisk Capital, Ovaioza Farm Produce Storage Business and Red King Chinmark.
An analyst, who lamented that the collapse of CBEX, may undermine public confidence in legitimate digital financial innovations, admonishes regulators to intensify awareness campaigns and enforcement actions against unregistered platforms operating in Africa.
He also offers the following advisory to Nigerians on how to guard against being duped by Ponzi schemes:
*Do not invest in platforms that promise guaranteed or overly high returns.
*Verify licences with local financial authorities (e.g., SEC Nigeria, CMA Kenya).
*Avoid platforms without clear, registered identities and offices.
*Conduct thorough research and seek professional advice before investing.
His conclusion: “CBEX’s collapse serves as a painful but important reminder of the dangers of online investment scams. Investors are encouraged to prioritize safety and due diligence over the lure of quick profits. Regulatory agencies, financial educators, and the media must work together to protect the public from similar threats.”
The insufferable losses notwithstanding, the CBEX fiasco may not be the last because of Nigerians’ rapacious inclinations, which are inching towards an epidemic. Work ethics and virtues like hardwork and dignity of labour are fast taking the backseat as people now indulge in all manner of vapid tendencies available to make easy money.
It is a fever. It is catching on. The general vulgar display of wealth by our leaders at various levels has negatively impacted the people. Nigerians now borrow to gamble or invest in all kinds of Ponzi schemes. Many actually dissipate whole salaries in these ventures. Even housewives are not left out in the easy-money-making pastime. Some housewives now invest part of the household allowances in sports betting or Ponzi schemes.
Most youths are no longer contented with salary-paying jobs. They trail their eyes on get-rich-quick ventures like sports betting, cybercrimes and/or ritual killings, otherwise called Yahoo Plus. Most of them are being cheered by their parents!
An analyst succinctly paints the picture thus: “Young musicians are singing that if you don’t make money, what is the gain? Parents are enjoying money from their ‘Yahoo-Boy’ children. People in power are embezzling public funds, and corruption is the order of the day. So, the ponzi guys are taking advantage of the rot out there and greed for money is offering them customers.”
As a way out, let us begin to gradually retrace our steps. First, let our leaders cut down on their obsession for vulgar display of wealth as well as primitive and sickening accumulations. Second, let the people also temper their rapacious pursuit of easy money. And then, let potential Ponzi investors look well before they leap.