The collapse of CryptoBank Exchange (CBEX) has left thousands of investors reeling, their hopes of quick returns crushed in what is now being labeled one of the biggest financial frauds to hit Nigeria. The Economic and Financial Crimes Commission (EFCC) confirmed that the platform, which promised investors a staggering 100% return in just 30 days, collapsed on April 9, 2025, wiping out what is believed to be over N1.3 trillion ($847 million) worth of investments. In response, the EFCC has joined forces with the International Criminal Police Organization (INTERPOL) to track down both local and international operatives behind this scandal.
According to EFCC spokesman Dele Oyewale, the commission had been investigating CBEX even before its dramatic downfall. Efforts to arrest the operators are in full swing, with investigations focusing on both the local and international actors who orchestrated the scheme. “We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” Oyewale confirmed. He added that the EFCC is collaborating with other regulatory bodies to uncover more fraudulent platforms operating across the country.
The tragic fallout from CBEX has sent shockwaves across Nigeria. The platform, which had advertised itself as a digital trading solution offering extraordinary returns, shut down its operations abruptly on April 9, locking users out of their accounts. To make matters worse, users were told they would need to deposit additional funds just to access their existing balance. This bizarre request led many unsuspecting investors to sink more money into a sinking ship, only to realize later that their funds had been wiped clean.
Among the estimated 1,000 affected users were individuals who had invested huge sums—some as much as $10,000. Many were drawn into the scheme by the promise of high returns and testimonials from peers who claimed to have made substantial profits. A victim who lost her bridal savings of $1,000 shared her anguish on social media, calling for help in recovering her lost funds. Another investor revealed his brother had invested his school fees into CBEX and now faces a heartbreaking confrontation with his parents.
This is not the first time Nigerians have fallen victim to Ponzi schemes, but the scale of this fraud has raised alarm. Just weeks before CBEX’s collapse, the Securities and Exchange Commission (SEC) issued a warning against unregistered trading platforms, stressing that under the new Investment and Securities Act of 2025, any entity offering online forex or crypto trading services must be duly registered. The SEC’s warning, however, came too late for many investors who had already committed to CBEX.
The EFCC’s recent crackdown on illegal investment schemes underscores the growing concern over unregulated platforms in Nigeria. As of March 2025, the commission had identified 58 companies operating Ponzi schemes, and it is actively working to recover stolen funds and prosecute the perpetrators. These companies, which include Wales Kingdom Capital, Bethseida Group, and AQM Capital Limited, among others, deceived Nigerians with promises of unrealistic profits in areas such as agriculture, real estate, and forex trading.
Experts have pointed out that the CBEX fraud is a direct result of unchecked greed among investors. Financial analysts argue that while the scheme promised returns that seemed too good to be true, many Nigerians ignored basic due diligence and fell victim to their desire for quick wealth. As one banker, Kelechi Godfrey, explained, “People want to invest N100 and get N200 within hours, but this greed clouds their judgment and makes them easy targets for fraudsters.”
As the EFCC and INTERPOL intensify their investigation into this massive fraud, Nigerians are urged to be more cautious when considering high-risk investments. Financial experts recommend verifying any investment platform with regulatory bodies like the Central Bank of Nigeria (CBN) and SEC before committing funds. With the ongoing hunt for the masterminds of CBEX, it remains to be seen whether investors will ever recover their money.
