In a shocking revelation, the promoters of the now-defunct Crypto Bridge Exchange (CBEX) exploited counterfeit certificates from the Economic and Financial Crimes Commission (EFCC) and the Corporate Affairs Commission (CAC) to lure over 600,000 Nigerian investors into a fraudulent Ponzi scheme. The collapse of CBEX on April 14, 2025, led to an estimated loss of ₦1.3 trillion, marking it as one of Nigeria's most significant digital financial scams.
The Deceptive Tactics:
CBEX, operating under the guise of a legitimate digital trading platform, falsely presented itself as a registered entity with the EFCC and CAC. By showcasing these forged certificates, the promoters gained the trust of investors, convincing them to invest in the platform's purported AI-driven trading operations. The platform promised a 100% return on investment within 30 days, a claim that attracted a massive influx of funds.
The Collapse and Aftermath:
On April 14, 2025, CBEX abruptly ceased operations, locking users out of their accounts and halting withdrawals. Investigations revealed that the funds were siphoned into a private Ethereum wallet, leaving investors with empty balances. Experts, including cryptocurrency analyst Taiwo Owolabi, confirmed that the platform operated as a Ponzi scheme, using funds from new investors to pay returns to earlier ones. The sudden disappearance of the platform and its assets has left many Nigerians in financial distress.
Regulatory Oversight and Legal Actions:
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have clarified that CBEX was neither registered nor authorized to operate in Nigeria. The EFCC has since initiated investigations into the fraudulent activities of CBEX and similar entities. In March 2025, the EFCC uncovered 58 illegal Ponzi scheme operators, underscoring the prevalence of such fraudulent activities in the Nigerian financial landscape.
The CBEX debacle serves as a stark reminder of the importance of verifying the legitimacy of investment platforms before committing funds. Investors are urged to conduct thorough due diligence and ensure that platforms are registered with the appropriate regulatory bodies. The EFCC's ongoing efforts to combat financial fraud highlight the need for increased vigilance and regulatory oversight in Nigeria's digital economy.
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