According to data from blockchain analysis firm Chainalysis, people lost nearly $10 billion last year due to cryptocurrency-related fraud.
With the spread of cryptocurrencies in Africa, this problem has become even more serious and complex.
CBEX SCANDAL DEEPLY AFFECTED KENYANS AND NIGERIANS
According to media reports, CBEX collapsed in April after defrauding many investors, particularly in Kenya and Nigeria.
However, AFP’s access to CBEX’s private Telegram groups revealed that the platform resumed operations despite investigations and official warnings.
Following the news of CBEX’s collapse, attacks were carried out on offices linked to the platform in Nigeria. These offices were subsequently shut down completely.
PERCEPTION OF LEGITIMACY: FAKE DOCUMENTS AND BRAND HIJACKING
CBEX attempted to appear legitimate by using a tactic known as “brandjacking,” adopting an abbreviation similar to that of the Beijing Stock Exchange in China.
They also claimed to be licensed in the United States and to use artificial intelligence technology provided by a company named ST Technologies International.
In January, they obtained a certificate from Nigeria’s Economic and Financial Crimes Commission (EFCC) claiming compliance with anti-money laundering regulations.
However, the EFCC later clarified that the document was issued only for “consultancy services” and did not grant any permissions for currency exchange or trading activities.
SUSPICIOUS IDENTITY AND CLAIMED DURATION OF OPERATIONS
Although CBEX claimed to have been operating for 10 years, media reports indicated that the company was actually established in Nigeria in July.
To avoid attracting attention, the platform repeatedly changed its website domain. Despite these efforts, its operations were eventually uncovered.
INTERNATIONAL WARNINGS AND MONEY LAUNDERING ALLEGATIONS
In April 2024, the Hong Kong Securities and Futures Commission (SFC) issued a public warning against CBEX Group. The warning stated that CBEX’s withdrawal wallets were linked to a Cambodia-based dark web marketplace called Huione Guarantee.
In May, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) declared Huione Group a “primary money laundering threat,” stating that the group had facilitated over $4 billion in illicit transactions between 2021 and 2025.
OPERATIONS IN NIGERIA AND KENYA
Following CBEX’s collapse, Nigeria’s EFCC launched operations targeting a total of 10 individuals in Nigeria and Kenya. As a result of legal proceedings, two individuals were arrested and arrest warrants were issued for eight others.
The EFCC announced that a “significant portion” of the lost funds had been recovered, though no specific amount was disclosed.