CBEX Ponzi Scheme Resurfaces With $100 “Verification Fee” Trap Amid Ongoing SEC Warnings
Two months after freezing customer withdrawals, CryptoBridge eXchange (CBEX), a notorious Ponzi scheme masquerading as a cryptocurrency exchange, is back in business. This time, it’s demanding a $100 “verification fee” from users before granting access to their frozen balances.
Despite multiple public warnings from Nigeria’s Securities and Exchange Commission (SEC) and arrest warrants from the Economic and Financial Crimes Commission (EFCC), CBEX has not shut down. Instead, it has rebranded and resurfaced under new domains, making it harder for regulators to track its operations.
CBEX’s New Tactics: Pay to Withdraw, Refer to Earn
CBEX’s latest ploy involves a blanket $100 charge for “account verification”. Previously, users were charged based on their balance size. Now, anyone hoping to access their funds, regardless of the amount, must pay this flat fee.
Once paid, users regain access to their dashboard, where their balances (as of April 2025) are displayed. CBEX then instructs them to engage in platform activities such as:
- Referring new users
- Placing trades based on daily shared “signals”
- Completing assigned trading tasks
These activities supposedly regenerate their balances, which CBEX claims will be paid out in staggered batches:
- 50% by June 25
- Remaining 50% by August 25
- 30% profit share by October 25
CBEX continues to promise high returns, though there’s no proof of payout. Users who claimed to have received funds declined to provide evidence when contacted.
Desperate Nigerians Keep Falling for the Scheme
Despite SEC warnings, many Nigerians are paying the fee and recruiting others, fearing the loss of their original investment.
“That was my school fees I invested,” says Favour Kwaghgande, a stranded CBEX user. “I have no idea where to raise another $100.”
Messages seen on CBEX’s Telegram engagement groups show admins like “Laurafx Wilson” actively encouraging deposits via USDT transfers before a June 24 deadline.
CBEX defends its paywall as a measure to filter out “fraudsters” and “illegal arbitrageurs”. But experts aren’t buying it.
“If CBEX really cared about system abuse, they could deploy decentralised authentication solutions like zkPass,” says Adebayo Solomon, a Nigerian blockchain engineer. “Instead, they keep demanding more money without offering transparency.”
Regulatory Warnings Continue, But Is It Enough?
On June 11, the SEC restated that CBEX and its partners, ST Technologies International Ltd and Smart Treasure, are not registered to offer investment services in Nigeria. The EFCC has declared six individuals wanted in connection with the platform, and some funds were reportedly recovered in late May.
Still, enforcement hasn’t caught up. Tofro and FutCoreCoin, both CBEX lookalikes, are already targeting the same user pool.
The Bigger Risk: Trust in Tech and Financial Desperation
Platforms like CBEX thrive because of widespread financial desperation and low digital literacy. Even in the face of obvious red flags, many Nigerians continue to chase elusive returns, hoping to recover lost capital.
CBEX’s strategy, pay to withdraw, refer to grow, is not just a scam. It’s a loop of exploitation that keeps victims financially trapped.
Regulators may need to go beyond circulars. Proactive enforcement, tech partnerships for domain takedowns, and public education campaigns are essential if Ponzi schemes like CBEX are to be eliminated.
