In the latest cautionary tale for Africa’s growing crypto community, Cbex, a platform that had promised effortless wealth through AI-powered trading returns, has left a trail of financial devastation across Kenya, Nigeria, and Egypt.
At the heart of it lies a deceptive playbook of sky-high promises, sudden account wipeouts, and a strange demand for “verification fees” that has many grieving as well as those who are devastated.
A Dream Turned Nightmare
Cbex rose to popularity with irresistible marketing: earn up to 30% in 30 days, refer friends for bonus payouts, and let AI handle the complexities of trading.
For many in regions facing economic strain, especially in Nigeria and Kenya, this was the golden ticket they’d been waiting for.
Investors flocked in, depositing anything from $100 to over $6,000 (KSh 777,000), expecting steady monthly growth.
But everything broke down in a single weekend. Users began waking up to shocking balances: empty wallets, locked accounts, and frozen dashboards.
READ ALSO:
Why Regulating ICOs and Stablecoins Matters Now More Than Ever in Kenya
Cbex quickly posted an unclear announcement blaming “malicious fraud platforms” for manipulating the market and compromising their AI systems. Rather than address the issue transparently, the platform made a startling announcement:
“To recover your funds, you must pay a verification fee of $100 or $200 before April 17.”
Anyone who failed to comply, they warned, would be permanently banned as a “fraudulent user”.
Verification or Extortion?
This “verification fee” has raised all the classic Ponzi red flags. Victims were already struggling from sudden losses yet were now being pushed to pay more to unlock their funds,without any guarantee of recovery.
The situation feels strangely familiar to seasoned Nigerian investors. In 2016, the MMM scheme, which also promised 30% returns, collapsed, leaving millions out of pocket.
Many now fear Cbex is a modern-day rebirth, only this time disguised in fancy interfaces and AI jargon.
Nigerian Investors Reach Boiling Point
The fallout has been especially intense in Nigeria. As frustration grew, angry investors stormed a Cbex office in Ibadan, looting everything from air conditioners to solar panels.
On Telegram, some users received cryptic reassurances from admins that the issue was being “handled”, but most were met with silence or, worse, automated bots demanding payment.
A user named Ola shared with BBC Pidgin:
“I was ready to withdraw all my investment last week, but my friend told me to wait… now it has crashed.”
Another claimed to have lost $16,000. These are not just statistics; they are the life savings of everyday people.
Kenya’s Crypto Regulation Push
In Kenya, the disaster has added fuel to regulatory efforts. The Virtual Asset Service Providers Bill of 2025, currently under review, aims to introduce clear oversight by the Central Bank of Kenya and the Capital Markets Authority.
This would bring legitimacy to the crypto industry, weeding out scams and protecting citizens from such digital traps.
The timing is critical. With platforms like Cbex exploiting legal grey areas, regulators are under pressure to act fast before more lives are financially ruined.
READ ALSO:
How JamboPay Lost Millions in a Sophisticated Cyberattack
Final Thoughts: A Heist in Plain Sight
Cbex’s collapse isn’t just a tech failure; it’s a masterclass in digital deception. It leveraged desperation, promised effortless wealth, and when things fell apart, asked victims to pay again to get back what was already theirs.
The incident highlights the urgent need for:
- Public education on crypto risks
- Stronger cross-border regulatory frameworks
- And a shift from hype to accountability in fintech
African investors need to be on the lookout for the next “AI-powered miracle” because it could turn out to be just another cryptocurrency fraud.
