$800M CBEX scam resumes operations in Nigeria

Homepage > News > Business > $800M CBEX scam resumes operations in Nigeria despite crackdown Two weeks ago, the Crypto Bridge Exchange (CBEX) collapsed and allegedly sank with $800 million worth of users’ deposits. The Nigerian government sprang into action, pledging to pursue the operators and recover the funds. However, CBEX has quietly reopened and is now recruiting new investors with the same promises of astronomical returns, according to local reports. Repackaged deception Before it collapsed, CBEX had over 600,000 users, mainly from Nigeria, but with a presence in Kenya. It lured investors with promises of 100% returns in 30 days, claiming to generate profits through AI-powered digital currency trading strategies. However, it was all a house of cards, and when it crashed, it wiped out hundreds of millions of dollars. The Ponzi scheme is back, however. Sources told one Nigerian outlet that the platform once again allows new users to register, trade and even withdraw their profits. However, there’s a catch: only the new accounts can reportedly withdraw their profits. Older accounts, which lost money when CBEX suspended withdrawals, must await “an ongoing investigation and audit by the UK government,” which will be completed in 60 days. The operators have allegedly dismissed scam claims. They say that their AI-powered bot had a mishap and lost some of the money. They also claim that the figure has been greatly exaggerated and is closer to ₦126 billion ($78 million). “According to the latest information shared, previous investors can only trade but not withdraw because the United Kingdom government is carrying out an audit on their financial account, which will be completed between 30 to 60 days. Hence, the reason why previous investors cannot withdraw their funds yet,” the source, whose identity was withheld, stated. However, a lot doesn’t add up, such as why the platform reopened if it’s under investigation by U.K. authorities or why the operators have not worked with Nigerian authorities to refund investors. When asked why the probe is not being handled by the Nigerian government, the operators stated, “The firm is registered in the United Kingdom, not in Nigeria. They merely extended their operations here. In fact, they also have branches in Kenya, South Africa, and Egypt.” Red flags abound; according to another local outlet, CBEX demands that older investors who wish to withdraw their funds after the probe is completed must pay $100 if they hold less than $1,000, or $200 if their holdings exceed that amount. “And we have started seeing people put in these funds to get back their money, and are using it to trade now, as I talk to you,” one operator told the outlet. Regulatory blame games As CBEX continues its deception, Nigerian authorities are engaging in blame games over who is responsible for one of the country’s biggest Ponzi schemes. As we previously reported, the Securities and Exchange Commission (SEC) insisted it was not responsible since CBEX had never registered with the agency. Now, the Economic and Financial Crimes Commission (EFCC) is taking the same route, but this time, it’s shifting the blame to investors. In a televised interview, the EFCC boss, Ola Olukoyede, said investors should have reported CBEX months before it collapsed. “And you know what, when the going is good. Nobody makes noise, nobody talks. But it is when the bubble bursts that EFCC is dragged into it,” he told Channels TV. The EFCC doesn’t have a “magic wand” that can detect all the scams that Nigerians are directing their funds to, he added. “So, we wait, most times, until the bubble bursts.” Olukoyede further described CBEX as a “very pathetic case for Nigerians who have lost their money,” but insisted that the EFCC is unlikely to recover the lost funds. While it distanced itself from the scam, the EFCC had earlier claimed to be pursuing some of the scam operators. A week ago, the agency published the names of eight suspects—four Nigerians and four Kenyans allegedly living in Lagos—whom it says were among the top brass at the firm. The EFCC boss said it’s working with Kenyan and international authorities to nab the suspects. However, history indicates that pursuing the Kenyan suspects might prove futile; when the Kenyan executive at Binance escaped detention in Abuja, the EFCC tried to pursue him in the East African nation, but Kenyan authorities were reportedly very uncooperative, and he was never arrested. Watch: Breaking down solutions to blockchain regulation hurdles title=”YouTube video player” frameborder=”0′′ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””> Source: https://coingeek.com/800m-cbex-scam-resumes-operations-in-nigeria-despite-crackdown/