The CryptoBank Exchange (CBEX) collapse is quickly shaping up to be one of Nigeria’s largest digital fraud cases, and its fallout is as vast as it is devastating — both financially and emotionally for thousands of investors.
CBEX, a digital investment platform promising 100% returns in 30 days, crashed on April 9, 2025.
The Economic and Financial Crimes Commission (EFCC) confirmed it’s investigating an alleged ₦1.3 trillion ($847 million) scam.
Operated by a mix of foreign nationals and Nigerian collaborators, the scheme lured investors using AI crypto trading promises.
Withdrawals were restricted right before the crash, and users found their accounts wiped out.
Shockingly, CBEX asked users to deposit more money ($100–$200) to “verify” accounts before they could withdraw — a classic exit-scam tactic.
The EFCC began investigating before the crash and is now working with INTERPOL to trace the international suspects.
Local partners are being targeted for arrest.
The EFCC also warned about 58 similar Ponzi schemes in a March 2025 alert, showing this is part of a larger trend.
- Massive protests and chaos followed the crash:
Ibadan: Investors stormed the CBEX office and looted property.
Abuja: Office in Jahi was shut down, staff went into hiding.
- Investors have lost life savings, school fees, wedding funds, and more:
One woman: “I lost my bridal savings. I feel numb.”
A student: “My brother invested his tuition. He can’t face our parents.”
Why People Fell for It
- Promises of fast and huge returns played on people’s desperation in a tough economy.
- Peer pressure and social proof made the scheme look legitimate (“my friend made big returns”).
- No due diligence — many investors skipped even basic online checks.
- Influencers and marketers helped push it under the illusion of credibility.
Expert Reactions
- Kelechi Godfrey (banker): “You don’t invest ₦100 to get ₦200 in an hour and expect it to be real.”
- Segun Aremu (investment banker): “People want big returns but not big risks. That’s greed.”
- Minister’s spokesman (Lere Olayinka): “No sympathy for greed and foolishness.”
What’s Next?
- EFCC says:
- Recoveries will be pursued if possible.
- Prosecutions will follow for all perpetrators.
- New law (ISA 2025) makes it a criminal offence to operate unregistered digital investment or forex platforms.
- SEC urges registration, verification, and caution from potential investors.
What You Should Know
- High returns = high risk. Anything that promises 100% in 30 days is likely fraud.
- If it needs you to “bring people” to make profit, it’s a Ponzi.
- Do your due diligence — check registration with CBN, SEC, and cross-reference with EFCC warnings.
Would you like:
- A visual explainer of how Ponzi schemes work?
- A step-by-step guide on how to verify a legit investment platform in Nigeria?
- Or perhaps advice on how victims can file claims or reports with EFCC or SEC?
Let me know how you’d like to proceed — this kind of info could save people from the next big scam.