BY PATRICK MGBODO
Hopes crumbled under the weight of broken promises. What once shimmered as a gateway to financial freedom has quickly dulled into despair. For many, the dream was vivid—an investment platform promising returns that seemed too good to be true. And indeed, they were.
What was once hailed as a golden opportunity has unravelled, leaving behind a trail of tears, regret, and empty wallets. Funds entrusted in good faith—believed to double in just 30 days—have disappeared like seeds scattered on rocky, infertile ground. This is the story of yet another failed investment scheme—CBEX—that lays bare the enduring dangers of Ponzi operations and the steep cost of misplaced trust.
CBEX, short for China Beijing Equity Exchange, emerged on Nigeria’s fintech landscape toward the end of 2024, presenting itself as a cryptocurrency trading platform powered by Artificial Intelligence (AI) for consistent profits. Despite its name suggesting links to a legitimate Chinese financial body, CBEX had no ties to the real China Beijing Equity Exchange. It only launched operations in Nigeria recently, contradicting claims that it had existed since 2017.
Promising investors a 100 per cent return within 30 days—a classic hallmark of Ponzi schemes—the platform gained rapid traction. It sustained the illusion of profitability by using funds from new investors to pay earlier ones: robbing Peter to pay Paul. Growth was aggressively pursued by incentivizing user referrals and offering tiered bonuses based on the number and investment size of recruits.
Their sleek website and the rhetoric of AI-driven trading gave it a veneer of legitimacy. But by February 2025, cracks began to show. Experts raised red flags over its similarity to collapsed schemes like MMM, which left millions of Nigerians in ruin in 2016.
Soon after, regulatory concerns surfaced. The Hong Kong Securities and Futures Commission flagged CBEX as a suspicious trading entity.
As forewarned, CBEX eventually collapsed, locking thousands of Nigerians out of their accounts.
On April 15, the platform cited a “security breach” and promised full reimbursement—but users woke up to find their account balances wiped clean.
The fallout has been heartbreaking. Bolarinwa, a Libya returnee, went viral on X (formerly Twitter), seen crying by the roadside. She had invested $200 of her own money and pooled an additional $800 from friends, based on the testimony of a neighbor who had earlier “cashed out.”
“When I returned from Libya after fighting, my neighbour told me about CBEX, saying it would help me. I didn’t want to join at first, but I saw him withdraw money.
He persuaded me to invest, promising I’d get twice what I put in,” she recounted tearfully.
Another investor, Ola Dabira, left a haunting message: “Dear ST/CBEX Team, after today, if you no longer see my messages, consider me dead. I sold the only property I had for my family and borrowed from a microfinance bank.
With this hardship in Nigeria, where do I start again—with four children? CBEX/ST, you have ruined my life. There’s nothing left for me on this earth.”
Oguonu Nchedo Easter echoed similar despair: “My kids are crying like someone died. All the hopes I gave them are shattered. I lost $1,000. It’s not the end of life, but we’re back to zero.”
While the victims mourn, legal professionals are pointing to the law. Timi Agbeje, a lawyer, in a video posted on X, cited the Investment and Securities Act 2025.
According to Section 61, any entity seeking to operate an investment business in Nigeria must first register with the Securities and Exchange Commission (SEC). This measure ensures that only authorized and regulated entities can operate in the investment sector.
Agbeje also referenced Section 344 of the same Act, which imposes a minimum five-year jail term, a fine of at least ₦5 million, or both, on anyone who attempts to defraud Nigerians through fraudulent investment schemes.
Furthermore, promoters, influencers, and bloggers who market or advertise Ponzi schemes are required to refund affected investors within one month.
Despite the law, many Nigerians online are reacting with indifference, citing a long history of similar scams. Mazi Nathan wrote: “MMM crashed. Racksterli crashed. MBA Forex crashed. Now CBEX has crashed. But Nigerians will still jump into the next Ponzi scheme. A fool and his money will always part ways.”
Dr Penking claimed over 50 Ponzi schemes have collapsed since 2016.
Another user, Olufemi Ayodele, recounted: “My barber kept preaching CBEX to me. I warned him to do a background check, but he refused. These Ponzi guys feed off Nigerians’ gullibility. They create flashy apps, and their first target is us. We claim to be the wisest, yet we keep falling.”
He added: “Why is it so hard for Nigerians to recognize Ponzi schemes after MMM, Racksterli, Twinkas, WHG, and the rest? The government even warned against investing in any platform not registered with the SEC—that should be the first check.”
According to reports, CBEX may have siphoned off as much as $800 million (₦1.3 trillion). In a country where 33 million people face food insecurity, this is not merely fraud—it is a national emergency. The need for public sensitization and financial literacy has never been more urgent.
Will Nigerians learn? Let this not just be another headline but a turning point. Investors must commit to financial literacy, and government agencies must double down on public education and early warnings.
Promoters of fraudulent schemes must be prosecuted to the full extent of the law—not only for deterrence but for justice. In the end, the real power lies in the hands of ordinary Nigerians to say “never again” and mean it.
But a rather weird part of the story is how many people did not know about the scheme until it crashed. Perhaps, their ignorance turned out to be bliss for them, otherwise the pool of tears would have been wider than it is currently.
On the flipside, it shows that those who were busy cashing out from the scheme chose to keep it a secret until the referral system was introduced lately; a sign that the platform was struggling to survive.
Yet, the whole episode shows that Nigerians may not really be as poor as statistics put it. With people investing as much as $5,000 dollars which translates into millions of Naira, we are all secret millionaires after all.
