Panic as CBEX investment scheme collapses, wipes out over N1trn in investors’ funds

A wave of panic and outrage swept across parts of Nigeria on Monday as CBEX, a controversial investment platform claiming to use artificial intelligence (AI) for trading, crashed spectacularly, taking with it over N1 trillion in investor funds.

The crash, which confirmed long-standing fears among skeptics, has left thousands of Nigerians stranded, with many now realizing they had fallen victim to a sophisticated Ponzi scheme.

The crash has already sparked chaos, especially in Ibadan, where aggrieved investors stormed the now-defunct CBEX regional office, looting valuables including televisions, air conditioners, office furniture, and other electronics in a desperate attempt to recover losses.

CBEX: A Mirage of AI-Powered Wealth

CBEX marketed itself as an advanced trading platform that leveraged AI to generate daily profits for investors. Promising consistent daily returns of $5 to $10, the scheme attracted a massive following, especially among young Nigerians and those seeking financial freedom.

To join, new investors were required to deposit a minimum of $100, download the CBEX app—not listed on Google Play Store or Apple’s App Store, but hosted on a self-managed and reportedly insecure website—and link it with Bybit, a cryptocurrency exchange platform, for fund transfers.

The platform instructed users to activate a daily “hosting” feature, allegedly to enable the AI to trade using signals twice daily. Deposits of $300, $400, or $500 supposedly earned users $5, $7, and $10 per day respectively, incentivizing higher deposits and referrals.

CBEX encouraged a referral system that became its core engine—typical of Ponzi operations—where “top investors” with thousands of dollars and several downlines opened CBEX offices in major cities, including a newly launched Lagos office just last week. These offices became recruitment centers for new investors, many of whom were convinced it was a once-in-a-lifetime opportunity to escape poverty.

Sudden Crash After Bonus Blitz

The signs of the crash began to emerge subtly. On April 5, CBEX announced an enticing “free bonus week” running from April 9 to April 14, luring investors with bonuses as high as $100. However, starting April 9, the platform paused withdrawals, citing backend upgrades and scheduled maintenance.

Despite multiple reassurances—even as late as midday on April 14, when CBEX insisted withdrawals would resume “in a few hours”—the worst fears materialized when investors woke up to find their balances wiped clean. All funds had mysteriously vanished, confirming the platform’s collapse.

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Damage Control and Desperation

In a typical Ponzi-style response, CBEX locked its Telegram channels and issued a vague explanation, claiming a “hack attempt” had triggered a malfunction in the AI system, causing it to trade away all investor funds.

Even more controversially, the platform urged affected users to make new deposits in order to recover their funds: $100 for investors with less than $1,000; $200 for those with balances above $1,000

This latest ploy has been widely condemned as an attempt to exploit desperate victims further.

Aftermath and Nationwide Fallout

In Ibadan, furious investors took to the streets, storming the CBEX office and carting away property in scenes reminiscent of similar investment fraud collapses in recent years.

Security operatives were reportedly deployed to prevent further vandalism, though no arrests have been confirmed.

The CBEX crash has become a major topic of national discussion, especially as it is estimated that well over N1 trillion may have been lost to the scheme.

Financial experts warn that the fallout may have long-term impacts on public trust in digital finance and investment platforms.

As investigations begin and victims regroup, this latest scandal underscores the urgent need for regulatory vigilance, public awareness, and digital financial education in Nigeria’s rapidly evolving fintech space.