A cryptocurrency platform, CBEX, is again sparking widespread alarm across Nigeria as thousands of users are reporting locked accounts, halted withdrawals, and fresh demands for cash under a so-called “deposit verification” process — a development authorities say is fitting the classic pattern of a Ponzi scheme.
Technology Times has learnt that CBEX, a platform marketing itself as an AI-powered crypto trading solution, is currently suspending user withdrawals and is asking investors to pay an additional $100 or $200 to verify their accounts before any compensation is released.
The platform, which claims to be using advanced artificial intelligence to generate returns of up to 100% monthly, is issuing threats of permanent account bans for users who fail to comply by today, April 17, raising red flags among cybersecurity experts, law enforcement, and Nigerian investors alike.
The platform, which claims to be using advanced artificial intelligence to generate returns of up to 100% monthly, is issuing threats of permanent account bans for users who fail to comply by today, April 17, raising red flags among cybersecurity experts, law enforcement, and Nigerian investors alike.
Cybersecurity analysts reckon that asking victims to deposit more money to access their supposedly lost funds fits a common pattern in Ponzi fraud schemes, where the operators seek to delay collapse by drawing in additional payments from gullible investors.
On Tuesday, CBEX says on its official X account that affected users must make a new “deposit verification” payment of either $100 or $200, depending on their account balance, before being eligible for compensation.
CBEX also says it is suspending withdrawals until April 17 and warns that any account not verified before then will be banned permanently without refund.
“In order to ensure the authenticity of platform accounts and protect the fair rights of members, we are conducting an authenticity verification of all accounts and arranging for fund compensation,” CBEX says.
The company says users with funds of $1,000 or less must deposit $100, while those with over $1,000 are expected to pay $200. The platform claims that verified users will receive compensation within 24 hours but does not provide any independent audit or evidence of lost funds.
“Accounts that fail to complete deposit verification by 23:59 on April 17 (UK time) will be regarded as fraudulent accounts, and will be permanently banned without compensation,” according to CBEX.
Many users say they are unable to log into their accounts or withdraw their money, leading to protests in Nigeria amid the large-scale crypto Ponzi scheme that has attracted the attention of local and international law enforcement authorities.
CBEC: The key developments
- CBEX suspending withdrawals until April 17 while demanding fresh deposits from already-locked-out users.
- SEC warning Nigerians to steer clear of unregistered crypto platforms.
- EFCC confirming active investigations in partnership with INTERPOL to track CBEX’s operators.
- New ISA 2025 law criminalising Ponzi schemes with up to 10 years in prison and heavy fines.
CBEX “Double your money” turns to locked accounts
CBEX is issuing online statements telling users that only verified accounts will be eligible for fund release, despite no audit trail or proof of losses.
According to the platform’s official handle on X (formerly Twitter): “In order to ensure the authenticity of platform accounts and protect the fair rights of members, we are conducting an authenticity verification of all accounts and arranging for fund compensation.”
CBEX adds that: “Accounts that fail to complete deposit verification by 23:59 on April 17 (UK time) will be regarded as fraudulent accounts and will be permanently banned without compensation.”
Depending on the size of their original investment, users must now pay either $100 (for funds under $1,000) or $200 (for funds over $1,000) to be eligible for refund — a move widely seen by analysts as a tactic to extract more funds before collapse.
Angry reactions, protests trail CBEC in Lagos, Ibadan
Videos circulating on social media are showing aggrieved investors storming CBEX offices in Lagos and Ibadan, with some reportedly seizing equipment in protest. Users say they were lured into the scheme via aggressive social media campaigns, fake testimonials, and promises of effortless wealth.
SEC issues red alert on unregistered schemes
Dr. Emomotimi Agama, Director General of Nigeria’s Securities and Exchange Commission (SEC), is warning Nigerians during a virtual forum on the Investment and Securities Act (ISA) 2025 to avoid digital schemes like CBEX.
Technology Times reported on Monday that SEC DG has warned Nigerians to avoid putting money into unregistered digital investment schemes.
“If you’re not registered, you’re in violation,” Agama says, during the virtual stakeholder session on the new Investment and Securities Act (ISA) 2025.
“If you’re not registered, you’re in violation,” Agama says. “We must establish clear rules for digital asset platforms. This allows the SEC to crackdown on illicit activities such as Ponzi schemes, pump-and-dump tokens, and unregistered exchanges.”
He also cautions celebrities against endorsing risky or unverified platforms.
The law prohibits platforms like CBEX from operating in Nigeria without SEC approval, which the platform does not have.
ISA 2025: What the Nigerian law says
Under Section 195(3) of the new ISA 2025, signed by President Bola Tinubu on March 29, Ponzi schemes are now legally defined as prohibited schemes and punishable by up to 10 years in prison, a ₦5,000,000 fine, or both.
ISA 2025 classifies Ponzi and pyramid schemes as “prohibited schemes” — including any investment operation that promises high returns with little or no risk and pays existing investors from new contributions. Such schemes, whether operated physically or online, are outlawed under Section 195(3) of the Act.
It defines a prohibited ponzi scheme as: “Any investment scheme that pays existing contributors with funds collected from new contributors to the scheme promising high returns with little or no risk:
- i) Whether or not the scheme limits the number of persons who may participate therein, either expressly or by the application of conditions affecting the eligibility of a person to enter into, or receive compensation under the scheme; or
- ii) Whether the scheme is operated at a physical address or through the internet or other electronic means.”
Under Section 195(4), anyone who promotes or operates a prohibited scheme commits an offence and faces a 10-year prison sentence, a ₦5,000,000 fine, or both upon conviction.
The SEC is also empowered under the law to seal offices, freeze assets, and recover losses from promoters of Ponzi operations.
EFCC, INTERPOL begin probe of CBEX
The Economic and Financial Crimes Commission (EFCC) says it is partnering with the International Criminal Police Organisation (INTERPOL) to track both local and international culprits behind the CBEX scam.
Dele Oyewale, EFCC spokesperson confirms that Nigerian authorities are working alongside INTERPOL to track the masterminds behind the CBEX scheme.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” Oyewale says, underscoring that following intelligence, the agency has initiated a probe before the collapse of CBEX.
CBEX: A Canadian ghost and Beijing mirage
CBEX has been falsely claiming registration in Canada and associating itself with the China Beijing Equity Exchange, a state-backed institution — both of which have denied any links to the platform.
Investigations by Sahara Reporters have revealed that CBEX is not legally registered in Canada, and has no affiliation with the Chinese institution it claims to represent — further raising concerns about its legitimacy.
CBEX: Silencing dissent, buying time
In another post on its X account, CBEX threatens whistleblowers: “Any individuals who denigrate the team or spread negative sentiments will be treated as fraudsters and will face permanent bans and disqualification from compensation.”
This language, according to cybersecurity experts, is characteristic of Ponzi operations that seek to mute criticism and delay collapse by extracting more money from their victims.
Financial analysts and watchdogs such as the US Security Exchange Commission, also say that such language and tactics are common in Ponzi schemes — designed to stifle dissent and delay collapse by extracting more money from victims.
Nigerian losses top ₦1.3 trillion
Though official figures are yet to be confirmed by the SEC or EFCC, multiple reports suggest CBEX may have defrauded Nigerians of as much as ₦1.3 trillion ($800 million). Some users reportedly sold properties or took loans to invest in the platform, hoping to double their money in 30 days.
CBEX: An Africa-wide reach
Business Daily in Kenya is also reporting that CBEX’s scheme is reaching beyond Nigeria, with local investors claiming heavy losses as the platform expands its footprint across African nations under similar deceptive tactics.
According to the report local investors in Kenya also lost large sums after using CBEX for cryptocurrency trading. Some users reportedly sold property or took out loans based on the platform’s promises of high monthly returns, including a 100% ROI in 30 days.
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