Nigerian social media platforms have been thrown into a frenzy following a surge of complaints and warnings about CBEX, a digital asset trading platform that some users are now labeling a potential Ponzi scheme. What began as a wave of enthusiasm and testimonials about high returns has quickly morphed into anxiety, as users report difficulty in withdrawing their funds.
The alarm bells rang loudest earlier this week when X user Man of Letters (@Letter_to_Jack) published a thread warning Nigerians about the dangers of investing in CBEX. According to him, he had spoken with a user who invested $1,000 and had already withdrawn $5,000, a return that seemed “too good to be true.” After conducting personal research into the platform, the user concluded that CBEX “flies all the flags of a Ponzi scheme.”
“People are cashing out steadily with no losses,” he wrote. “You know what that means? Easter, Ileya, or Xmas. For those who don’t understand, what I’m telling you is the crash is imminent.”
His tweet quickly gained traction, racking up hundreds of reposts, likes, and heated comments. Some interpreted it as a subtle promotion, while others praised him for sounding the alarm on what they perceived as another digital trap ready to ensnare unsuspecting Nigerians.
By Friday morning, those warnings appeared to gain new credence. Numerous users across X, WhatsApp groups, and Telegram channels reported that they could no longer withdraw funds from their CBEX wallets. The timing of these issues couldn’t be more critical—many had invested heavily, expecting quick returns.
One X user, Ajoke (@BlessedAjoke), attempted to calm nerves, claiming the situation was temporary. “Cbex is still working perfectly, just that you can’t withdraw until the 15th of April,” she said. “You people should stop spreading fake news. Stop giving people heart attacks.”
Another user, aust;n (@0kparam), criticized those seemingly celebrating the platform’s troubles. “Y’all are acting like CBEX crashing makes you financial sages. Nah, it just makes you bitter haters… Ponzi, yen yen yen. Just stfu coward,” he wrote, reflecting the tribal nature of social media debates around money-making ventures.
Yet, for many digital-savvy Nigerians who have witnessed the boom and bust of countless schemes—like MMM, Racksterli, and Chinmark—the signs are all too familiar.
“MMM was a global Ponzi scheme that later crashed. Racksterli was a local Ponzi scheme that also later crashed. CBEX has all the hallmarks of a Ponzi scheme, but Nigerians are just too greedy with short-term memories,” wrote Mazi Nathan (@rukky_nate).
Despite the storm surrounding it, CBEX has maintained a positive and confident front. Through its official handle, @cbextrades, the platform shared motivational posts and updates from its offline promotional campaigns.
In one post, the company boasted about grassroots outreach:
“Today, the instructors from the Abeokuta office went outside the office, actively going door-to-door to promote the project and encourage people to participate in this great initiative.”
In another, it dismissed the crash rumours entirely:
“CBEX can never crash at all. We will forever stand strong. Don’t panic at all. Only those who haven’t been with us for long will panic and lose hope.”
One final post urged users to beware of phishing and fake withdrawal links, advising them never to share their passwords or verification codes with others.
“We aren’t running away with anybody’s money. Everything is in order. CBEX Exchange will forever stand,” the post concluded.
CBEX claims to be a digital asset trading platform, though detailed information about its founders, physical offices, and regulatory licenses remain elusive. Its operational model relies heavily on community referrals, mouth-watering bonuses, and testimonials of massive earnings—strategies long associated with Ponzi and multi-level marketing schemes.
At the time of writing, Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) had yet to issue an official statement regarding CBEX. However, in previous circulars, both bodies have repeatedly warned citizens to be cautious of “investment platforms that promise unrealistic returns” and to verify any financial operator’s registration status.
A March 2025 bulletin from the Economic and Financial Crimes Commission (EFCC) listed 58 platforms operating illegally across the country. While CBEX was not explicitly named, it closely mirrors the modus operandi of several platforms on that list.
Experts say the rise of CBEX and similar platforms is driven by Nigeria’s harsh economic climate, where inflation, high unemployment, and naira volatility have created a fertile ground for risky financial ventures.
“Desperation drives innovation—but it also attracts exploitation,” says financial analyst Ifeoma Ogbonna. “Many young people are tired of conventional savings. They want fast returns, even if it means flirting with the dangers of Ponzi-like platforms.”
CBEX, with its glitzy marketing, local summits, and user testimonials, tapped into that sentiment. It offered hope—now, it’s offering anxiety.
Whether CBEX recovers or collapses, its story serves as yet another cautionary tale in Nigeria’s volatile digital finance space. It also raises broader questions: How can financial literacy be improved nationwide? When will regulatory agencies step up enforcement against rogue platforms? And what safeguards can protect ordinary Nigerians from the next flashy scam?
Until then, for many, CBEX may become another footnote in the long ledger of digital platforms that promised too much—and delivered too little.