Key points

• CBEX promised a 100 percent return on investment in one month.

• The SEC has issued a warning against unregistered trading platforms.

• Investors continue to fall victim to Ponzi schemes in Nigeria.

In March, Okikiola Abdul invested $300 in CBEX, a forex trading platform promising impressive returns. He hoped to use his investment to rent an apartment and complete personal projects.

Initially, the platform seemed too good to be true, offering a 100 percent return in just 35 days. Despite his doubts, Abdul was convinced by a close friend who had been trading on CBEX for six months.

But the hopes of many investors like him were shattered after a warning from a popular social media user.

On April 9, an X user (@Letter_to_Jack) warned investors about CBEX, claiming it resembled a Ponzi scheme despite the promised gains.

The post quickly went viral, garnering over a million views. The user noted that people were earning substantial profits, but these types of schemes usually end badly.

CBEX’s sudden crash left Abdul and hundreds of others in despair, unable to withdraw their funds.

How CBEX operated

CBEX marketed itself as a global digital asset trading platform, offering high returns on investments in cryptocurrency.

Investors were promised a 100 percent return in one month for as little as $100. Like most Ponzi schemes, it used a referral system to attract more participants.

When a new investor joined using a referral link, both the referrer and the new user received a bonus.

The platform operated through a Telegram group, where trading signals were shared with investors. Investors were expected to follow these signals on the CBEX trading app.

However, the scheme’s downfall came when withdrawals were suspended, citing “system upgrades.”

By April 10, users reported that their balances had dropped to zero, and the platform offered verification processes, demanding payments to unlock funds.

This situation mirrored other Ponzi schemes, leaving many investors disillusioned and financially ruined.

The SEC’s response and Nigeria’s Ponzi scheme problem

The Securities and Exchange Commission (SEC) of Nigeria quickly responded to the collapse of CBEX.

The SEC warned against investing in unregistered trading platforms and emphasized that it was illegal to operate such platforms without registration.

The new Investments and Securities Act 2025 imposes severe penalties for Ponzi scheme operators, including fines of up to N20 million and up to 10 years in prison.

Nigeria has a long history of Ponzi schemes, the most notable being the Mavrodi Mundial Moneybox (MMM), which crashed in 2016, leaving millions of Nigerians in financial ruin.

Despite past warnings, schemes like CBEX continue to attract desperate investors lured by promises of high returns.

As the government cracks down on these illegal operations, the public remains at risk, often ignoring the tell-tale signs of fraudulent schemes.