Kenyan civil servant Edwin is one of many African investors who have fallen victim to CryptoBridge Exchange (CBEX), a fraudulent cryptocurrency trading platform that lured users with promises of artificial intelligence-driven profits. Edwin, who only provided his first name out of shame, lost nearly $16,000—mostly borrowed from a bank—to the scam, which collapsed in April after targeting users primarily in Kenya and Nigeria.
“I had very big plans,” Edwin told AFP. “But I was conned both by the platform and an agent who claimed he could recover my money.”
CBEX promoted itself heavily on Telegram, advertising guaranteed monthly returns and generous referral bonuses—hallmarks of Ponzi-style schemes. Initial payouts convinced victims like Edwin to invest more, despite lacking prior crypto-trading experience.
Blockchain analysis firm Chainalysis reported that global losses from crypto scams reached $9.9 billion in 2024, with Africa facing a growing wave of sophisticated digital fraud.
Despite CBEX’s apparent collapse, AFP verified that it has resumed operations on Telegram under new aliases, even as investigations and regulatory warnings continue. In Kenya, another victim, Abby, admitted introducing 25 relatives and friends to the platform. “They invested so much, and it all disappeared,” he said.
In Nigeria, the fallout sparked protests and the closure of CBEX-affiliated offices. The platform had falsely claimed links to the China Beijing Equity Exchange, operated under the name ST Technologies International Ltd in Nigeria, and presented dubious licenses—including an anti-money laundering certificate from Nigeria’s Economic and Financial Crimes Commission (EFCC), which the agency later clarified was unrelated to crypto operations.
According to Kenyan crypto investigator Wycklife Sewe, CBEX manipulated investors’ wallets to display fake balances while siphoning real funds via the TRON blockchain. “They designed their system to fool users into thinking their money was safe,” he said.
CBEX reportedly rerouted funds through complex wallet chains and multiple conversions to obscure their trail. Investigations by analyst group Specter have linked the platform’s wallets to Huione Guarantee, a Cambodia-based darknet service identified by the U.S. Treasury as a major facilitator of illicit transactions totaling over $4 billion.
Authorities in both Nigeria and Kenya are pursuing legal action. The EFCC has arrested two individuals and issued warrants for eight more. Kenya’s Capital Markets Authority has issued a formal investor alert, while lawmakers are debating legislation to regulate virtual assets and ban Ponzi schemes.
Despite claiming to have “compensated” users, CBEX is now demanding verification fees to release funds—another known scam tactic. Telegram has flagged several CBEX groups as fraudulent. “Scam content is removed when discovered,” a Telegram spokesperson told AFP.
