On Monday, April 14, 2025, panic swept across social media as countless Nigerians realized they had likely been scammed, again.
This time, it was CBEX, a digital asset trading platform that promised mouthwatering returns and claimed to be powered by artificial intelligence. But after weeks of frozen withdrawals and suspicious activities, users logged in to find their accounts showing zero balance.
GlobalHints takes a deep dive into how CBEX lured in investors, the red flags people missed, and why Nigerians keep falling for Ponzi schemes that look too good to be true.
How Ponzi Schemes Took Root in Nigeria
Ponzi schemes aren’t new here. They’ve been part of Nigeria’s financial history since the 1980s and 90s, long before smartphones and online platforms became common. Back then, schemes like Umana-Umana, Planwell, and Nospecto attracted desperate investors with flashy promises of fast profits. When new sign-ups slowed down, these schemes collapsed, leaving thousands in tears.
What helped these scams thrive? A deadly combo of poverty, weak financial laws, and limited investment options for everyday people.
The Rise and Fall of MMM Changed Everything
Ask any Nigerian about Ponzi schemes, and most will mention MMM. It arrived during the 2015 economic downturn, offering a 30% return and changing the game completely. Millions jumped on it,some even used their returns to pay rent or school fees.
But the dream came crashing in 2016 when MMM froze all accounts, blaming a “system overload.” It was later revealed that the crash wiped out around ₦18 billion. Some victims even took their own lives. Despite all the heartbreak, new copycat platforms kept popping up.
The Scams That Followed
From 2016 to 2021, we saw the rise of platforms like Twinkas, Ultimate Cycler, Racksterli, and MBA Forex. Each one had a different disguise,some claimed to be forex traders, others focused on agriculture,but the results were always the same: massive losses.
MBA Forex alone reportedly cost investors over ₦213 billion. By 2022, total losses from Ponzi schemes in Nigeria had reached nearly ₦1 trillion. The EFCC made arrests here and there, but most victims never saw their money again.
What Exactly Is CBEX?
CBEX showed up in Nigeria in 2024, branding itself as a smart, AI-powered trading platform. It promised to double your money in just 30 days. It even copied the layout of legit platforms like ByBit to appear professional and trustworthy.
But there was no real company behind it. CBEX falsely claimed it had been around since 2017 and used a shady referral system to grow, encouraging users to bring in more people for extra bonuses. Some investors were told they had to recruit 12 people before they could withdraw profits.
They also made users wait 40–45 days to cash out and charged a steep 20% penalty for early withdrawals.
Then came the biggest red flag: on Thursday, CBEX paused all withdrawals, claiming it was undergoing “system upgrades.” Meanwhile, it pushed users to deposit even more money.
“All My Hard Work Is Gone” — A Nigeria woman Painful Story
“I put in $200 of my own money, then collected from friends-$1,000 in total,” said Bola, her voice shaking with emotion while speaking with TVC NEWS on Tuesday.
The Nigerian woman, who had recently returned from Libya after years of hard labor, stood crying at the entrance of the CBEX office, devastated by the loss of her entire life savings.
Why Do Nigerians Keep Falling for These Scams?
Experts say it comes down to three main reasons: desperation, poor financial education, and weak regulation.
With inflation high and job opportunities scarce, many Nigerians are actively looking for side hustles or quick returns. Ponzi schemes take advantage of this by painting a picture of financial freedom that feels just within reach.
And until recently, there wasn’t even a clear law banning them. Before President Tinubu signed the Investment and Securities Act 2025, the rules only required platforms to register with the SEC. That gap gave scammers free rein to operate.
Even some banks were found to be helping launder money for these schemes, and yet, little action was taken.
Trust in traditional institutions is also low, so when a flashy new platform pops up promising easy money, people often ignore the warnings. The use of influencers and celebrities to promote these platforms only makes matters worse.
SEC Steps In With a Warning
Following the CBEX disaster, the Securities and Exchange Commission (SEC) has issued a clear warning: any platform not registered with the SEC is illegal.
Speaking during a virtual session on the new Investment and Securities Act, SEC Director General Agama said, “If it’s not registered, it’s illegal.”
He explained that the updated law now gives the SEC power to shut down shady platforms and prosecute celebrities or influencers who promote them.
“It’s time we all became more responsible,” he said. “These so-called meme coins and influencer-endorsed platforms are doing more harm than good.”
