CBEX: Nigeria's Greatest Digital Scam?

CBEX (CryptoBank Exchange) presented itself as a legitimate cryptocurrency trading platform, offering investors the promise of high returns through AI-driven trading. It operated primarily through a sleek mobile application and a Telegram group known as "Super Technologies" (ST), which amassed thousands of Nigerian investors. (Techloy)

How the Scam Operated

1. Enticing Investment Promises

High Returns: CBEX promised a 100% return on investment within 35 days. (Techloy)

AI-Powered Trading: Investors were told that an AI system would handle trading on their behalf. (Crypto.News)

Referral Incentives: Users were encouraged to refer others, with the promise of increased trading frequency and higher returns. (Techloy)

2. Illusion of Legitimacy

Fake Documentation: CBEX showcased regulatory documents, including a FinCEN registration and a certificate from the Colorado Secretary of State. However, these were misleading, as FinCEN registration does not equate to endorsement.

Professional Appearance: The platform’s website and app were designed to mimic reputable exchanges, enhancing its credibility.

3. Operational Mechanics

Hosting Feature: Investors activated a "hosting" feature, purportedly allowing the AI to trade on their behalf.

Fake Dashboards: Users saw fabricated trade logs and balances, giving the impression of successful trading.

Withdrawal Delays: While initial withdrawals were processed to build trust, delays and issues began to surface over time.

Over 1.3 Trillion Naira or 840 Million Dollars was stolen as a result of the scam.

The Collapse

Between April 9-15, 2025, CBEX halted all withdrawals, citing a security breach. Investors found their account balances wiped, and the platform introduced a "compensation program," demanding additional payments of $100–$200 to unlock funds .

Aftermath and Investigations

• Investor Reactions: The sudden collapse led to widespread outrage. In some instances, frustrated investors stormed CBEX offices in cities like Ibadan and Lagos .

• Law Enforcement Actions: The Economic and Financial Crimes Commission (EFCC) of Nigeria, in collaboration with INTERPOL, launched investigations into the scam, aiming to trace both local and international perpetrators .