CBEX Collapse: Unmasking Africa’s $800 Million Crypto Ponzi Scheme That Devastated Nigeria and Kenya

In April 2025, the cryptocurrency community in Africa was rocked by the sudden collapse of CryptoBridge Exchange (CBEX), a platform that promised investors extraordinary returns but ultimately operated as a sophisticated Ponzi scheme. The fallout has left thousands of investors in Nigeria and Kenya grappling with significant financial losses, highlighting the urgent need for increased vigilance and regulation in the burgeoning crypto market.​

CBEX marketed itself as an AI-driven digital asset trading platform, enticing investors with promises of 100% returns within 30 days. The platform claimed to leverage advanced algorithms to generate consistent profits, attracting a vast user base eager to capitalize on the crypto boom. However, these promises were a facade for a classic Ponzi scheme, where returns to earlier investors were paid using the capital from newer participants

In early April 2025, CBEX abruptly restricted withdrawals, disabled its official communication channels, and demanded additional “verification fees” from users under the pretense of account recovery. These actions triggered widespread panic among investors, many of whom realized they had fallen victim to a scam. Estimates suggest that over $800 million was lost, with some reports indicating that the figure could be as high as ₦1.3 trillion

The collapse of CBEX has prompted investigations by financial authorities in both Nigeria and Kenya. Nigeria’s Economic and Financial Crimes Commission (EFCC) has launched a probe into the scheme, collaborating with international agencies such as INTERPOL and the FBI to track down the perpetrators

In Kenya, the Capital Markets Authority (CMA) has issued warnings to the public about unregulated investment platforms and is working to enhance investor education to prevent future scams.​

The CBEX debacle serves as a stark reminder of the risks associated with unregulated investment platforms. Investors are urged to conduct thorough due diligence before committing funds, including verifying the registration and regulatory status of investment platforms. Authorities are also encouraged to strengthen regulatory frameworks to protect investors and maintain the integrity of the financial system.​

The collapse of CBEX has had devastating consequences for thousands of investors in Nigeria and Kenya, underscoring the perils of Ponzi schemes masquerading as legitimate investment opportunities. As the crypto market continues to evolve, it is imperative for both investors and regulators to remain vigilant to safeguard against similar fraudulent activities in the future.