CBEX Ponzi scheme allegation sparks new outrage after users’ funds disappear

Social Media platforms have gone abuzz following widespread claims that CBEX, the controversial investment platform, is a Ponzi Scheme. The heated debate about its suspicious motive hit a new high after users’ funds disappeared from their wallets on Monday.

Recall that suspicion surrounded the platform’s authenticity after it paused withdrawal on April 9 with claims that it would be reactivated on April 15. This caused users to become confused after they were unable to access their funds. The platform cited “system upgrades” as the reason for the deactivation.

Such delays, coupled with reports of aggressive customer support demanding additional deposits, have fueled fraud allegations.

While many raised concerns that CBEX was a Ponzi Scheme and urged others to exit the platform, another group was of the opinion that the platform’s functionality proved it was still trustworthy and disregarded any claims of critics spreading fear and misinformation.

With the claims of fund disappearance and other sundry developments, Nigerians took to the social media platform X (formerly Twitter) to express their reaction. While some expressed their grief and provided consolation to users, others blamed investors for their failure to heed warnings.

A user, @akanlaff, in a pacifying tone, expressed his disappointment, “So sorry to everyone affected by this. It’s painful and unfair. Cbex is gone with our hard-earned money”

Another, @morolaoluwa warned Nigerians to stay off suspicious investment platforms. “Please do not invest your hard-earned monies in these ponzi schemes. Anyone who promises you 50 percent returns within a month on your investment is out to scam you. Instead, invest in stocks, mutual funds, treasury bills, etc.”

Also, @Captal_DC, in a sarcastic tone, said: “You know why scams like Cbex will never end and continuing to cash out on intentional gullible humans? Cuz they operate on your greed. You haven’t learn from MMM, racksteli, and co. Don’t worry another one will come and u will still fall for same trick.”

What’s CBEX saying 

CBEX (China Beijing Equity Exchange), which began operation in Nigeria in late 2024, was portrayed as an investment platform leveraging artificial intelligence (AI) to trade on behalf of users, offering a 100% return on investment in just 30 days. That investments are accepted exclusively in USD, with no minimum or maximum limits disclosed publicly, makes it acceptable to a wide audience.

The company runs a suspicious operation, where early investors likely get returns from funds deposited by new recruits, and the latter potentially faces losses together. There is also its regulatory flag off from Hong Kong, withdrawal restrictions, and lack of transparency, all activities clearly indicating a potential Ponzi scheme.

Reacting to the Ponzi scheme allegations, which went viral on Friday, CBEX, through its official X account on Friday, denied the platform was shutting down and attempted to reassure users.

“We sincerely apologize for the inconvenience caused to all members during this period. The platform is currently conducting a comprehensive investigation into accounts suspected of illegal arbitrage and money laundering. This process is expected to be completed before the 15th.”

In another round of posts, the platform tried to motivate users with a video post citing that all funds are completely secured on the CBEX platform and that more information will be made available in due time.

“We urge everyone not to spread unnecessary panic. Stop panicking and spreading false rumours. Believe in the process. We are still here and will continue to be here. Our goal is not yet achieved.’

While some users remain hopeful of withdrawing their funds on the said date, others noted that any investment platform that does not allow a user to withdraw its full capital after deposit is a scam.

Meanwhile, CBEX’s moves bring memories of notorious Nigerian Ponzi schemes, notably MMM (Mavrodi Mondial Moneybox, 2015-2016) and GetHelp (2017).

SEC’s reaction and lessons to learn 

Amid the public outcry, the Securities and Exchange Commission (SEC) noted that any platform not registered with it is illegal and warned Nigerians against patronizing unregistered platforms. Information on the SEC website revealed that CBEX is not registered under the agency.

“Very recently, there has been a post that has gone viral around a particular platform and the activities of such platforms. And of course, the aftermath of it is further news of their closure and all of that. In fact, I was tagged in one of those messages. I want to state it very clearly. If it is not registered, it is illegal,” SEC DG, Emomotimi Agama stated on Monday without directly mentioning the platform.

Speaking on the provisions of the Investment and Securities Act (ISA 2025) recently signed by President Bola Tinubu, the SEC DG said the Act has established clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.

It added that this allows the SEC to crack down on illicit activities, such as Ponzi schemes, pump-and-dump tokens, and unregistered exchanges, creating a safer environment for investors.

While the CBEX case reiterates the need for financial literacy, being aware of potential scams, and learning from previous occurrences, Nigerians must learn to make informed investment decisions.

The suspicion around the CBEX investment platform serves as a stark reminder for Nigerians to exercise caution when investing in online platforms. Red flags to watch out for include unrealistic returns, lack of transparency, and over-reliance on referrals. CBEX promised unusually high returns with little risk, lacked transparency in its operations, and incentivized referrals, all indicative of a Ponzi scheme.

To protect oneself, it’s essential to carry out thorough research, verify a platform’s legitimacy, and understand the risks involved. Diversifying investments across different asset classes can also help minimize risk. Being cautious of unregistered platforms and avoiding getting caught up in the hype surrounding investment opportunities can also help prevent financial losses.

Notably, recognizing that all investments carry risk and being prepared for potential losses is crucial.