Facing financial ruin and personal embarrassment, Edwin, a Kenyan civil servant, is among hundreds left devastated after losing approximately $16,000 to CryptoBridge Exchange (CBEX), a cryptocurrency platform accused of operating fraudulent schemes across Africa.
Edwin, who only disclosed his first name due to the stigma of being defrauded, came across CBEX through the messaging app Telegram. He was enticed by promises of AI-driven trading systems guaranteeing high monthly returns and lucrative referral bonuses—hallmarks of classic Ponzi operations.
“I had very big plans. But I was conned both by the platform and an agent who lied he could help recover my money,” Edwin told AFP.
Encouraged by small early returns after he began investing in August, Edwin continued to increase his stake—despite having no prior experience with cryptocurrency—eventually losing about 2.1 million Kenyan shillings, mostly borrowed from a bank. He now fears he may struggle to repay the loan.
According to blockchain analytics firm Chainalysis, approximately $9.9 billion was lost globally to crypto scams last year. While such frauds are not new to Africa, their scale and sophistication have escalated alongside the continent’s growing digital finance adoption.
CBEX abruptly shut down operations in April, leaving hundreds of investors stranded, particularly in Kenya and Nigeria. However, AFP has confirmed that the platform has since resumed activity through its Telegram channels—despite ongoing investigations and multiple warnings issued by authorities.
‘I’m Broke’
Abby, another Kenyan victim, said he introduced 25 friends and family members to CBEX, all of whom lost money.
“(They) invested so much, and it all disappeared,” he told AFP. “I would really love to help them recover but I’m broke.”
In Nigeria, the platform’s collapse prompted attacks on CBEX-linked offices, which have now closed. One Nigerian investor, Adeoye, lost ₦700,000 (around $450).
“The offer was juicy,” he said. “I knew it was a risk, but I thought I would be lucky to cash out before anything happened.”
CBEX reportedly engaged in “brandjacking” by mimicking the acronym of the China Beijing Equity Exchange to bolster its credibility. It also falsely claimed to be licensed in the United States and affiliated with a firm called ST Technologies International, which was supposedly responsible for its AI trading algorithms. While CBEX obtained an anti-money laundering certificate from Nigeria’s Economic and Financial Crimes Commission (EFCC) in January, the EFCC later clarified that this only applied to “consultancy services” and not currency exchange activities.
Building a Facade of Trust
To further feign legitimacy, CBEX claimed a decade-long operational history, though local investigations suggest it began operating in Nigeria only in July of the previous year, later expanding to Kenya.
Kenyan blockchain investigator Wycklife Sewe told AFP that the platform appeared to run for just one year before its collapse. “If you check CBEX wallet addresses on-chain, they were only operating for about a year,” Sewe said.
He explained that while investors believed their funds were active and growing, CBEX had programmed its systems to display false data while immediately siphoning deposited assets via the TRON blockchain. The funds were then routed through multiple wallets and cryptocurrency conversions to obscure their origin.
“They have designed their system using code to fool you that your money is still there and you can see it growing. But your money is moved immediately after you deposit,” Sewe added. He also indicated that CBEX was running additional fraudulent schemes concurrently.
CBEX has changed its web domain at least four times in an effort to avoid detection. AFP was able to verify these domains.
Global Scrutiny and Legal Response
In April 2024, Hong Kong’s Securities and Futures Commission issued a public alert naming “CBEX Group.” Further investigations by crypto analyst Specter linked CBEX’s withdrawal wallets to Huione Guarantee, a Cambodia-based darknet platform allegedly facilitating illegal crypto transactions.
In May, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) labeled Huione Group a “primary money-laundering concern,” stating it facilitated over $4 billion in illicit transactions between August 2021 and January 2025.
Kenya’s Capital Markets Authority has since issued an “Investor Alert” concerning unregulated crypto platforms, while Nigerian authorities have ramped up enforcement. The EFCC confirmed the arrest of two individuals and has issued warrants for eight more in Kenya and Nigeria. Nigeria’s new Investments and Securities Act explicitly criminalizes Ponzi schemes.
However, recovery efforts remain slow and complicated. The EFCC has stated that a “reasonable sum” of funds has been retrieved, but it did not disclose the amount, citing the challenges of converting digital assets back into national currency.
Telegram, the platform where CBEX operated, told AFP that “scam content is removed when discovered and offending users banned.” AFP confirmed that several CBEX-linked Telegram groups are now marked as scams.
Despite previously blaming hackers for the losses, CBEX claimed on June 10 via Telegram that it had “compensated” victims. However, the platform asked affected users to pay a verification fee to receive refunds—a common tactic in secondary scams.
For victims like Abby, the experience has been a sobering lesson:
“Never, ever again! I am done,” he said.
