Post Image
  Ponzi schemes are no new phenomenon in Nigeria. Despite the lessons learned from past fraudulent schemes like MMM and Racksterli, a new scam has emerged under the guise of an investment platform called CBEX. Despite warnings from financial experts and previous scandals, Nigerians continue to fall for such deceptive schemes, risking their hard-earned money.
Read more about Finance
CBEX, which promises an unbelievable 100% return on investment (ROI) in just 35 days, has quickly gained traction, exposing how easy it is for such schemes to thrive, especially in an economy where financial literacy is low and regulation is lax.

Understanding Ponzi Schemes

A Ponzi scheme is a type of investment scam that promises high returns with little to no risk. It works by using the capital of new investors to pay returns to earlier investors, creating the illusion of a profitable business. However, as the scheme grows and more money is needed to pay existing investors, the system eventually collapses when new investment slows down, or the operators can no longer meet the payouts. In the case of CBEX, the scheme promised high returns by claiming to use “AI-driven trading” for digital asset investments. The scheme appeared legitimate, especially when mimicking reputable platforms like ByBit, to deceive investors into thinking it was a credible trading platform. However, it quickly became clear that CBEX was operating as a Ponzi scheme, similar to notorious scams like MMM and Racksterli.

CBEX: A New Mask for an Old Trick

CBEX, initially thought to be a legitimate trading platform, is a fraudulent scheme operating under the domain cbex.cx. The original China Beijing Equity Exchange (cbex.com.cn) is a legitimate organisation based in Beijing, but the fraudulent CBEX version, promising ridiculous returns, bears no affiliation with the authentic one. It promises investors that they can make 100% returns in just 35 days, a feat that should immediately raise red flags. Much like MMM and Racksterli before it, CBEX lured Nigerians with promises of easy money, using an elaborate facade of “AI trading” and enticing bonus incentives for referring new investors. However, its operations were purely based on the pyramid structure, new investments paid out older ones, with no actual trading taking place. CBEX was flagged for fraud in Hong Kong early in 2024, yet Nigerians continued to pour in their money. The narrative surrounding CBEX eerily echoes the past experiences with MMM and Racksterli. MMM, which infamously promised 30% returns per month, swept through Nigerian social media in 2016. Despite warnings from financial experts and the government, Nigerians fell for the scheme in droves, only to be left with empty pockets when the platform eventually collapsed. Similarly, Racksterli, a Ponzi scheme that promised daily returns, also attracted thousands of Nigerian investors before it eventually fell apart.
Sign up for the Connect Nigeria daily newsletter
What makes CBEX more concerning is that, despite the lessons of these earlier schemes, many Nigerians still fall victim to it. The familiarity of the model: guaranteed returns, referral bonuses, and the promise of a secure investment, combined with the facade of artificial intelligence, led people to ignore the telltale signs of a scam.

The Road Ahead: Will Nigerians Ever Learn?

Despite the overwhelming evidence of fraud, there are still Nigerians who believe in the platform’s legitimacy. Many continue to argue that the platform is simply experiencing technical difficulties and that their funds will eventually be returned. Others, like Jack, a Nigerian X user, have been vocal in calling out CBEX as a Ponzi scheme from the start. His timely warnings saved many Nigerians from becoming victims of the fraud. Yet, some people persist in their denial, claiming that they were able to withdraw funds, pointing to individual success stories as proof that it is not a scam. However, history shows that the first few withdrawals are always part of the illusion designed to keep more people invested. The continuing rise of Ponzi schemes like CBEX highlights a deeper issue in Nigeria: the need for greater financial literacy and stricter regulation in the investment sector. Despite the lessons from MMM, Racksterli, and other scams, many Nigerians are still susceptible to these deceptive promises of fast wealth. As long as the allure of easy money exists and the infrastructure for financial education remains weak, Ponzi schemes will continue to prey on vulnerable populations. Nigerians must remain vigilant, educate themselves on the risks of such schemes, and push for stronger regulations to protect themselves and future generations.
Register to attend the CN Business Mixer

Conclusion

CBEX, much like its predecessors, MMM and Racksterli, serves as a stark reminder of the dangers of Ponzi schemes. While they may promise quick returns, they ultimately result in financial ruin for those who fall victim. The question remains: will Nigerians ever fully give up on Ponzi schemes? Until financial education and regulatory enforcement are prioritised, the cycle of scams will likely continue, preying on those seeking financial relief in an uncertain economy.
Did you find this article useful? Contact us: editor@connectnigeria.com
You might also like:
This article was first published on 17th April 2025
Notice: Undefined variable: last_modified in /var/www/html/articles/wp-content/themes/cnhalptem/content-single.php on line 36

samson-ogunmola

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *