The CBEX Collapse: 7 Red Flags of a Ponzi Crypto Scheme You Must Look Out For
By BRANDECONOMY Business Desk
“They came with office spaces, Chinese connections, and big promises. Now, N1.3 trillion is gone.”
When news broke that Crypto Bridge Exchange (CBEX) had collapsed, wiping out over N1.3 trillion in investors’ funds, many Nigerians were stunned. The firm, which began operating in July 2024, presented itself as a reputable digital investment platform with links to China. But by April 2025, it turned out to be yet another unlicensed and fraudulent operation, according to the Securities and Exchange Commission (SEC).
CBEX’s crash is just the latest in a worrying trend of unregulated investment platforms targeting unsuspecting Nigerians with unrealistic returns, sleek marketing, and superficial legitimacy.
But this isn’t just about CBEX. It’s a wake-up call. Here’s how to spot a crypto Ponzi scheme before it’s too late — and how to protect your money.
🚩 1. Promises of ‘Guaranteed’ High Returns
If it sounds too good to be true, it probably is.
CBEX lured investors by guaranteeing incredibly high profits in record time. That’s a hallmark of Ponzi schemes — guaranteed returns with zero risk.
SEC boss Dr. Emomotimi Agama warns:
“Investors must beware of any platform offering implausibly high, guaranteed returns. That’s not how legitimate investment works.”
🚩 2. Lack of Registration with the SEC
Before investing in any digital platform, check if it’s registered with the Nigerian SEC.
CBEX was never licensed to operate as a digital assets exchange. In fact, it operated under false names — including ST Technologies International Ltd and Smart Treasure/Super Technology.
💡 Investor Tip: Always verify platforms at sec.gov.ng/cmos
🚩 3. Fake Foreign Affiliations
CBEX falsely claimed links to a Chinese government-owned business — Beijing Equity Exchange. That entity issued a statement disassociating itself from CBEX, calling the use of its name a theft of identity.
This tactic — using foreign ties to boost credibility — is a common fraud strategy.
🚩 4. Physical Offices That Create a False Sense of Security
CBEX opened a sleek office in Ibadan, Oyo State. For many investors, a physical address signals legitimacy.
But fraudsters know this — and exploit it. By the time complaints piled up and withdrawal requests were denied, CBEX had shut down its office and vanished.
🚩 5. Multiple Operating Names and Rebranding
When investment platforms constantly change names, it’s a red flag.
CBEX was operating under at least three aliases, which made it harder for investors to track complaints or legal action.
🚩 6. Aggressive Marketing and Referrals
CBEX ran a massive promotional campaign, targeting Nigerians with catchy slogans, testimonials, and referral-based sign-ups — classic multi-level marketing (MLM) tactics.
Dr. Agama said their investigations showed that CBEX created a false perception of legitimacy through aggressive promotion.
🚩 7. No Transparency or Regulatory Oversight
Legit platforms disclose their directors, operating licenses, financial audits, and risk factors. CBEX disclosed none of these.
In fact, according to SEC investigations, the company actively concealed critical information while soliciting funds.
What’s Next? A New Era of Crackdowns
With the newly signed Investments and Securities Act (ISA) 2025, the SEC now has broader powers to go after Ponzi scheme promoters. The Commission says it’s coordinating with law enforcement to bring CBEX and its affiliates to justice.
“We welcome innovation — but it must occur within a regulated environment that protects investors,” Agama stated.
🚨 Final Thoughts: What Every Nigerian Should Do Before Investing
- ✅ Check SEC Registration
- ✅ Avoid Promises of Quick, Guaranteed Returns
- ✅ Research Company Background
- ✅ Ignore Unsolicited Investment Offers
- ✅ Be Wary of Referral-Based Models
- ✅ Verify Foreign Claims
- ✅ Look for Regulatory Disclosures
Stay Safe, Stay Smart
As Nigeria’s financial ecosystem embraces innovation — from crypto to CNG — the risks are evolving too. At BRANDECONOMY, we believe in empowering readers with the tools to build wealth intelligently and protect it fiercely.
Don’t fall for the next CBEX.
Have you lost money to a Ponzi crypto scheme? Share your story with us: [email protected]
