Crypto dreams, ponzi nightmares: How CBEX and its ilk prey on Nigeria’s SMEs

In the heart of Lagos, where the hum of generators competes with the chatter of bustling markets, Chika, a new-age fashion entrepreneur, once believed she had found a lifeline. Her boutique, nestled in the vibrant streets of Yaba, was her pride, a testament to years of toil and tenacity. At 32, her fashion boutique had survived inflation spikes, inconsistent power supply, and dwindling customer spending. And like many small business owners, she was tired. But when CBEX, a platform promising daily returns through what it called “AI-driven crypto bonds,” crossed her path, hope clouded caution.

“They made it sound so legit,” she recalls, her voice tinged with regret. “The website was sleek, the testimonials felt real. I thought, maybe this is the break I need. Maybe I can finally rest a bit,” Chika told SMEPEAKS, shaking her head.

Chika wasn’t alone.  In WhatsApp groups, market stalls, and even some tech co-working spaces, CBEX became the new buzz. Across Nigeria, thousands of SMEs, from tech startups in Abuja to agro-businesses in Kano, found themselves ensnared by CBEX’s allure. With a supposed 5% daily return and generous referral bonuses, CBEX didn’t just look promising, it looked like the miracle people had been waiting for.

But like so many schemes before it, CBEX’s lights dimmed as quickly as they had flashed. In its wake, it left unpaid workers, depleted inventory, failed rent payments, and brought businesses to their knees.

A familiar game, just glossier

Ponzi schemes aren’t new to Nigerians. In fact, Nigeria’s history with Ponzi schemes is long and painful. From the infamous MMM, which collapsed in 2016, leaving over 3 million Nigerians at a loss of approximately ₦18 billion, to Racksterli, endorsed by celebrities and promising quick riches, the pattern remains: high returns, rapid recruitment, and eventual ruin. 

CBEX, however, brought a new sophistication. What set CBEX apart wasn’t just its tech polish, but how well it spoke the language of its victims.

It wore the skin of a fintech. 

Leveraging the buzz around cryptocurrency and fintech, it presented itself as a cutting-edge investment platform. CBEX mimicked the startups that people trust. Its talk of “tokenised assets,” “decentralised finance,” “AI trading bots” lent it an air of credibility. For many SMEs, already grappling with limited access to traditional financing, CBEX seemed like a beacon.

“In a country where bank loans are hard to come by and interest rates are sky-high, platforms like CBEX exploit the desperation of entrepreneurs,” notes financial analyst Adebayo Ogunleye.

“They dangle the carrot of easy money, and in the process, divert funds that could have been used for genuine business growth.”

Tolulope Adedeji, a Lagos-based retail analyst, concurs, adding that “when the situation of accessing a ₦500,000 bank loan is nearly impossible without collateral, a platform like CBEX feels like your only shot.” 

According to Chika, she initially deposited ₦300,000, half of her December earnings. “I just wanted to double it before the end of Q1,” she said. “It sounded easier than going through a microfinance bank.”

For Kunle, a bakery owner in Ibadan, CBEX felt like a collective movement.

“I brought in my staff, my siblings. We were all in. Then one day, the site just stopped working.”

Here`s the common denominator for these businesses: CBEX had the perfect bait. Hope, tech and financial desperation all glossed over with a strong allure — 5% daily returns, compounded. Users watched dashboards show their earnings grow in real time. Referral programs incentivised viral growth. Many SMEs onboarded employees, friends, and even customers into the platform. A few early beneficiaries got fast returns and flaunted them, further fueling the scheme’s legitimacy. At its peak, it spread faster than any SME-focused fintech in recent memory, and that’s exactly why its collapse hurt so deeply.

When the tap ran dry: the aftermath, dreams deferred

As is typical with Ponzi schemes, things fell apart quickly once new inflows slowed.

When CBEX inevitably collapsed, the fallout was devastating. Businesses that had invested their working capital found themselves unable to restock inventory, pay employees, or service debts. The ripple effects extended beyond the entrepreneurs to their families, employees, and communities.

“I had to let go of two staff members,” Chika admits, tears welling up.

“It’s not just about the money lost; it’s about the trust broken, the dreams deferred.”

CBEX rolled out withdrawal restrictions under the guise of “system upgrades,” “KYC enhancements,” and “regulatory compliance.” Traders were told to “upgrade their accounts” to access funds, often requiring more deposits. Meanwhile, the site started showing errors, customer service vanished, and Telegram groups were muted.

By the time it became clear CBEX had collapsed, many SMEs had sunk their working capital, some even loans, into the platform. SMEPEAKS spoke with multiple victims, including:

• Adaobi, a flour vendor in Enugu who invested ₦500,000 from her flour outlet’s December profits. “I was hoping to use the gains to restock for the new season,” she said. “Now I can’t even meet rent.”
• Kunle, a baker in Ibadan who onboarded five staff members into the scheme. “It felt like community investing. Now, we all feel betrayed.”

For many of these small businesses, CBEX wasn’t just a side hustle — it became core to their survival strategy. Its collapse left a crater.

The deeper danger: not just a scam, but a systemic gap

CBEX and others like it thrive in a void. That void is what many Nigerian SMEs live in every day, a space with high operating costs, limited credit access, and financial products that either don’t exist or don’t serve them.

“What CBEX offered was fake, but it was speaking to a real pain,” said fintech analyst Yinka Ogunmola.

“When something feels designed for you, with low entry points, fast returns, and easy mobile access — it’s hard to say no, especially when banks barely say yes.”

With FX volatility, inflation, and government-backed loans tied in bureaucracy, it’s no wonder many SMEs turned to CBEX, not out of greed, but survival. “We just wanted to buy stock, pay salaries, keep the doors open,” Kunle added.

And it worked, for a while. Some users saw early payouts, used them to lure in others, and fueled the belief that it wasn’t a scam. Then came the collapse. Withdrawals were delayed, Telegram groups muted, customer care vanished, and error pages took over.

CBEX had vanished.

Why SMEs are particularly vulnerable

CBEX’s fallout isn’t just a story about crypto or tech, it’s a cautionary tale about structural gaps in SME financing and digital literacy.

“Many business owners aren’t financially illiterate,” says Ogunmola.

“But they lack access to regulated investment opportunities. When something that looks professional, tech-savvy, and high-yield comes along, it fills that vacuum, dangerously.”

In markets like Nigeria, where inflation outpaces savings, and banks offer low or inaccessible interest on deposits, Ponzi schemes disguised as fintechs offer false alternatives. “These scams thrive in the absence of better options,” Ogunmola adds.

What happens after the dust settles

For Adaobi, the flour vendor in Enugu, it meant cancelling her seasonal restock plans. “I used our profits from December. I was hoping to triple it, restock and expand. Now, I’m just trying to make rent.”

Chika, back in Yaba, made the tough call of letting two employees go. Kunle says his bakery is now barely breaking even.

“It wasn’t just a financial loss,” Chika said.

“It’s the shame. The guilt. The feeling of being stupid.”

Unfortunately, none of CBEX’s founders have been tracked down. There have been no arrests or formal investigations. And as is often the case, business owners are left to bear the weight of their loss, quietly.

Beyond CBEX, a broader epidemic

CBEX is but one in a series of schemes that have plagued Nigeria’s financial landscape. PorkMoney, for instance, lured investors with promises of profits from pig farming, only for its founders to abscond, leaving a trail of losses estimated in the billions.  These schemes, often operating under the guise of innovation, exploit regulatory gaps and the public’s limited financial literacy. 

CBEX, like many other platforms, used technology as a mask. Sleek UI. Crypto-speak. Fake dashboards. The illusion of transparency. And yet, the real opportunity may lie in using technology the right way — to prevent, not facilitate, this kind of harm.

Cybersecurity expert Seyi Martins believes platforms need a form of digital KYC, even among fintechs. “If an app is asking for deposits and promising returns, it should be licensed or at least traceable. A sandbox model could help.”

Ogunmola adds that fintech associations and regulators could curate “verified lists” of investment platforms or offer badges for transparent operations.

“We can’t expect every SME owner to know what a smart contract is. But they deserve to know what’s safe.”

Tech’s role in scams, and in solutions

CBEX wasn’t an isolated case. Similar schemes like MBA Forex, Pinkoin, and even the infamous MMM all followed the same trajectory. What’s different is how tech now legitimises them.

From slick UI/UX design to “trading bots” that never existed, CBEX borrowed the language and look of real fintech. “We need a conversation around ‘pseudo-tech,” says cybersecurity expert Seyi Martins. “Not every platform using the word ‘AI’ is legitimate.”

However, tech can also be part of the solution.

• Regulatory sandboxes could fast-track licensed, SME-friendly platforms, creating safer options for business owners.
• Open finance education could be embedded into platforms used by traders and SMEs.
• Verified investment platforms, curated by trusted bodies, could reduce exposure to scams.

What now?

CBEX’s founders have disappeared. As of now, no refunds, arrests, or regulatory responses have been made public. And for many SMEs, the damage is done.

But the broader question remains: how do we protect small business owners from the next CBEX? The answer isn’t a single fix. It’s a collective response built around stronger regulation, more robust financial education, and a more inclusive investment ecosystem that doesn’t leave entrepreneurs at the mercy of shiny scams.

A smarter path forward: building resilience

Addressing this menace lies in a multi-pronged effort:

1. Strengthen financial literacy
   Entrepreneurs don’t just need tools, they need knowledge. Tailored campaigns, business literacy workshops, and platforms that teach risk evaluation can help founders spot red flags early and discern genuine opportunities from scams.
2. Regulatory oversight that works
   Agencies like the SEC and EFCC must step up, not just to shut down fraudulent platforms but to license and monitor the ones operating in this grey zone of tech-enabled finance. Faster response times and visible accountability could save millions.
3. Support real, legitimate ventures
   Quick-money traps often look appealing because real capital is so hard to access. By providing accessible financing options and support structures for SMEs — startup credits, SME-focused funds, trusted peer platforms — the allure of quick-fix schemes will be vanquished.

For entrepreneurs like Chika, the journey to recovery is arduous. Yet, amidst the challenges, there’s a renewed determination. “I’ve learned the hard way,” she says, “but I won’t let this define my story.”

Editorial Disclaimer:

This article is based on verified experiences and reporting. However, some names and identifying details have been changed to protect the privacy of individuals. Any resemblance to actual persons, living or dead, or real-life situations beyond the reporting context is purely coincidental. SMEPEAKS remains committed to ethical storytelling, source protection, and the responsible representation of sensitive issues affecting SMEs and the broader business landscape.

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