CBEX: How Unknown Individuals Used AI-powered Investment Scam to Defraud Thousands

Nigeria, the Sub-Saharan giant, is still trying to comprehend the news of a crashed investment platform that has left hundreds of thousands of people reeling due to lost investments. While many people have pointed to the greed of individuals who went all-in on the platform, others have questioned the presence of the platform, citing the nature of its entry and exit from the Nigerian space. So what happened? Stick to the story. 

What is CBEX 

CBEX is a cryptocurrency investment platform that offers trading services and has been doing so in conjunction with other platforms like Smart Treasure. According to reports from users, the company promised an unusually high return on investment (ROI) of 100% per deposit. Users could deposit as little as $100 while CBEX uses AI to trade on their behalf. Return on investment is expected within 35 days. There's also a referral program on the platform that users earn from, with many running Telegram and WhatsApp groups joined by unsuspecting individuals. 

Some users claim to have had positive experiences with CBEX, citing successful withdrawals and returns on investment for weeks. Testimonies like this led existing customers and their referrals to increase their deposits on the platform, with many taking loans and selling property. 

Issues With Legitimacy 

Like many platforms before it, the question of legitimacy has always been an issue. As one user (@SpecterAnalyst) on X (formerly Twitter) noted, CBEX claims to have been in existence since 2017 under a company named ST Technologies International Limited, but the reality is otherwise. According to WHOIS data, none of the websites run by the platform were registered before January 2024, meaning the CBEX Ponzi scheme only went live last year.

However, there is a legitimate company called CBEX Group or China Beijing Equity Exchange, which is government-operated. Furthermore, in February and April of 2024, the legitimate CBEX (in China) and the Hong Kong authorities released statements denying any link to the crypto exchange using their name in Nigeria, and there's more. Information from the Corporate Affairs Commission (CAC), the agency that deals with corporate matters, indicates that CBEX was registered last year, 2024.

Furthermore, the platform was listed under SCUML (Special Control Unit Against Money Laundering), a compliance database run by the country's apex financial crime fighter, EFCC (Economic and Financial Crimes Commission). While CBEX may be registered with these two crucial bodies, nothing indicates that the people behind the company followed due diligence. Instead, the company has an appearance of legitimacy that convinced the public to give them their trust, a decision that has proven to be costly. 

Painful Loses 

According to one user on X, "I sold all my valuable properties worth $47k and invested everything inside CBEX, plus the loan I took." "I learned about CBEX quite early and immediately put some money into it. Within 35 days, I was able to gain an extra $500, but I invested that, too. Now, I'm left with nothing. I've lost it all," another user wrote. 

Information from the web shows that about 80% of the traffic to the CBEX website came from Nigeria, with Kenya following behind. However, the sheer number of scammed individuals seems to be from Nigeria. A news report on Businessday alleged that N9.6 billion of users' investments in Nigeria were wiped from the CBEX platform. That is the equivalent of $6.1 million per today's exchange rate between the two currencies. 

Scam Hall of Fame

CBEX is one platform in a long line of investment Ponzi schemes that have bedeviled Nigeria and some parts of Sub-Saharan Africa, such as Mavrodial Mondial Movement (MMM), iCharity, Crowd 1, Ultimate Cycler, Get Help Worldwide, Twinkas, iCharity Club, Loopers Club, InksNation, Lion’s Share, Baraza Multipurpose Cooperative, BitFinance Global, Zar Find, and a host of others. 

What makes CBEX different is that it happens to be the first investment and profit scam to be powered by artificial intelligence. However, funds have suddenly disappeared from the trading app, while aggrieved investors have swarmed the recently launched CBEX office located at Seliat Bus Stop in the Egbeda-Idimu area of Lagos State. 

How to Avoid AI-powered Investment Scams 

Be Cautious of Unrealistic Returns

Be wary of investment opportunities that promise unusually high returns with little risk. If it sounds too good to be true, it probably is. For example, CBEX's business model and operations are not transparent, making it difficult for users to understand how returns are generated.

Verify Legitimacy

Research the company or platform thoroughly. Check for reviews, ratings, and testimonials from trusted sources. Be cautious of fake or manipulated reviews. Besides, the Nigerian SEC warned investors about the illegal activities of CBEX. 

Don't Rely on AI Alone

While AI can be a powerful tool, don't rely solely on AI-powered investment platforms or financial advice. Consider consulting human financial experts or conducting your own research.

Stay Informed and Trust Your Instincts

Stay up-to-date with the latest financial news and scams, especially those generated by AI. Educate yourself on common scam tactics and stay vigilant. 

Lastly, if something feels off or you're uncomfortable, trust your instincts and avoid the investment. Many people believed CBEX's offers were too good to be true, saving them financial losses. By being cautious and doing your research, you can protect yourself from financial scams, including those powered by AI.