• 01 Jul, 2025
• Faith Kegh
• No comment

CBEX Crypto Scam: AI-Promoted Ponzi Scheme Defrauds African Investors.

Edwin, a Kenyan government employee, was devastated after losing $16,000 to CryptoBridge Exchange (CBEX), a cryptocurrency platform that turned out to be a Ponzi scheme targeting African investors. He first came across CBEX on Telegram, where the company promised guaranteed monthly returns through AI-driven trading and attractive referral bonuses common tactics used in fraudulent schemes.

Despite lacking experience in cryptocurrency, Edwin initially received some returns, which encouraged him to invest more. Most of the money he lost came from a bank loan, and he is now struggling with the debt.

According to blockchain firm Chainalysis, global losses to crypto scams reached about $9.9 billion last year. In Africa, the rise in such frauds reflects the growing interest in cryptocurrency, alongside increasingly sophisticated scams.

CBEX shut down in April, leaving many investors in Kenya and Nigeria financially devastated. Despite this, AFP found that the platform had restarted operations and remained active in private Telegram groups, even as investigations and government warnings continued.

Victims Speak Out

Abby, another Kenyan, shared his regret over introducing 25 family members and friends to CBEX, who all lost their investments. “I would love to help them, but I’m broke,” he said.

In Nigeria, the platform’s collapse led to backlash, including attacks on CBEX-linked offices that have since closed. One Nigerian, Adeoye, lost N700,000 (about $450) and admitted he knowingly took the risk, hoping to exit before the scam unfolded.

Fraudulent Claims and Misrepresentation

CBEX used a deceptive strategy known as “brandjacking,” adopting an acronym similar to the China Beijing Equity Exchange. It falsely claimed to be licensed in the U.S. and operated in Nigeria under a firm called ST Technologies International. The company even obtained a certificate from Nigeria’s Economic and Financial Crimes Commission (EFCC), though the EFCC later clarified that the certificate was only for consultancy not for financial transactions.

CBEX also misrepresented its history, claiming a decade of experience. However, investigations revealed that it only started operations in Nigeria in mid-2024 before expanding to Kenya.

Kenyan crypto investigator Wycklife Sewe explained that CBEX used blockchain networks like TRON to quickly move investors’ funds after deposits, routing them through complex transactions to hide their trail. The platform showed fake account balances to make investors believe their money was safe and growing, while in reality, it had already been siphoned.

CBEX has changed its website domain multiple times to avoid detection. AFP identified at least four domains linked to it.

Global Alerts and Warnings

In April 2024, the Hong Kong Securities and Futures Commission issued a public warning against “CBEX Group.” Later, crypto analysts linked the platform’s withdrawal wallets to Huione Guarantee, a Cambodian darknet marketplace used for illegal crypto transactions. The U.S. Treasury recently labeled Huione a “primary money-laundering concern,” citing over $4 billion in illicit activity between 2021 and 2025.

Following the collapse of CBEX, Kenya’s Capital Markets Authority issued an investor warning, and the country’s parliament is now considering new cryptocurrency regulations. In Nigeria, the EFCC has arrested two individuals and issued warrants for eight others across Nigeria and Kenya. A new law criminalizes Ponzi schemes.

Recovering stolen funds has proven difficult. In May, EFCC stated that it had retrieved “a reasonable sum,” though it gave no specifics. The challenge lies in converting digital assets back into national currencies.

Telegram, where CBEX recruited most victims, says it removes scam content when discovered. Some CBEX groups are now marked as scams on the platform.

Re-Scamming Tactics

Despite its collapse, CBEX recently claimed on Telegram to have reimbursed lost funds  but only after asking victims to pay a “verification fee,” a common scam technique.

For many affected, the experience has been a harsh lesson. “Never again,” said Abby. “I am done.”

Faith Kegh

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