Introduction
Nigerians fall victim to crypto scam is the stark reality after the sudden collapse of the Crypto Bridge Exchange (CBEX). What began as an enticing AI-powered investment quickly turned into a massive Ponzi scheme, wiping out over $800 million and devastating thousands.
What Happened with CBEX?
CBEX started operations in Nigeria in July 2024, touting AI-driven trading strategies and promising up to 100% returns in just 40–45 days. Initial payouts were made to lure investors—many of whom spread the word to friends and family.
But in April 2025, withdrawal requests stalled, and the platform disappeared along with investors’ funds—estimated at ₦1.3 trillion (~$840 million) .
Victims reported withdrawal delays, sudden “verification fees,” and eventually total loss of access to their money.
Why Many Nigerians Were Vulnerable
- Financial illiteracy: Around 38% of Nigerians lack basic financial knowledge, making them vulnerable to too-good-to-be-true promises.
- Economic hardship: High inflation (23.7%) and unemployment drive people toward high-risk schemes .
- Aggressive marketing: Word-of-mouth, WhatsApp groups, and online influencers made the scheme seem credible.
Red Flags of Crypto Ponzi Schemes
- Unrealistic returns: 100% in under two months should be a major warning.
- Withdrawal issues: Delayed or blocked access to funds.
- Complex tech claims: Promises of AI-driven profit without clarity.
- Lack of regulation: CBEX wasn’t registered with Nigeria’s SEC or other authorities .
A Wave of Victims and Regulatory Response
Many investors—like Mandela Fadahunsi—lost their savings and even rental funds. Anger grew, leading to ransacking of CBEX offices in Lagos and Ibadan .
The Economic and Financial Crimes Commission (EFCC) labeled the platform a Ponzi scheme and recovered some funds while arresting operators.
Lessons Learned & How to Protect Yourself
- Verify registration: Always check platforms with the SEC.
- Understand the product: If you can’t explain how it makes money, steer clear.
- Beware of high returns: Guaranteed profits are a red flag.
- Don’t ignore withdrawal warnings: Early signs of trouble include delays or extra fees.
- Learn financial basics: Education is key to protecting personal finances.
Conclusion
The shocking scale of the CBEX collapse is a harsh reminder that greed and desperation can cloud judgment. As Nigerians fall victim to crypto scam, the need for stronger regulations, public awareness, and financial education has never been clearer. The SEC and EFCC must continue to act, and everyday investors must learn to safeguard their funds.
Stay informed with TheMorningNewsInformer’s latest coverage on financial reform and crypto safeguards. Curious about post-CBEX regulations, investor safety tips, or a follow-up deep dive? Just ask!
