Conversations about money, especially the kind we want to multiply, are often sensitive, tense, and defensive. The stakes are rarely low. Every decision is a risk, and suggestions come with a disclaimer: “This is not a financial advice,” they’ll say. “Do your research.” And when things go wrong, as they often do, the blame falls squarely on the individual who’s expected to have known and chosen better.

That is the familiar story playing out again, this time in the wake of CBEX’s collapse.

CBEX was launched in Nigeria in July 2024. Like many other Ponzi schemes before it, it lured investors with the promise of a 100% return in just 30 days. Its appearance of legitimacy relied on a supposed background as an artificial intelligence-powered cryptocurrency exchange company registered in the United States and certified by the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). It also operated local offices in Lagos and Ibadan.

But behind the layers of technical jargon and official-sounding claims, CBEX’s model of profit was the usual tactic of using funds from new investors to pay off older ones. To keep momentum going, it pushed an aggressive referral system that gave users tiered bonuses and rewards depending on the size of their network. These methods quickly fueled adoption among Nigerians despite its dollar-denominated model. But the inevitable happened as it eventually collapsed on April 15.

Before this, initial signs of trouble appeared in early April when withdrawals were paused due to a purported security breach. Complaints grew as some users discovered their account balances had been reduced to zero and found themselves unable to reach customer support. All expectations of a return on investment were dashed at that point, with some aggrieved users reportedly ransacking the exchange’s office in Ibadan, Oyo State. Some also took to social media to vent their frustration and outrage. 

According to investigations by Techpoint Africa, Nigerians lost no less than $6.1 million to the Ponzi.

Nigeria’s Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC) were quick to react following the crash. “Recently, a particular platform has gained attention online, with numerous posts going viral regarding its activities,” said Emomotimi Agama, SEC’s Director General. “Subsequently, there have been reports suggesting its shutdown. I want to make this absolutely clear: if a platform is not registered with the SEC, it’s illegal.”

The authoritative nature of these comments does little to conceal the fact that the failure of regulatory bodies to act preemptively remains a major contributor to the ongoing surge of fraudulent investment schemes in the country.

Since the notorious MMM scheme left many Nigerians financially handicapped in 2016, more than fifty similar scams have surfaced. According to economist Paul Alaje, who spoke on Arise TV, Nigerians have lost an estimated ₦4.8 trillion to these schemes.

Financial regulators must do more than simply respond after the damage is done. The country faces low levels of financial literacy, weak consequences for past offenders, and inconsistent regulatory enforcement. These gaps continue to make room for fraudulent schemes to grow.

And for the public, due diligence remains a critical line of defense. When the economy offers few good options, a promise that sounds too good to be true can still feel worth the risk. But that cannot remain an excuse. The system and culture may have enabled it, but individuals still owe themselves basic due diligence before making financial decisions that could have lasting consequences.