A growing crypto scam has left African investors in ruins. After promising profits through AI trading, the platform CryptoBridge Exchange (CBEX) disappeared with millions of dollars. It primarily used Telegram groups to target users, imitating a regulated company to win their trust.
CBEX operated for less than a year before collapsing, wiping out savings, loans, and reputations. Additionally, investors like Adeoye in Nigeria and Edwin in Kenya have been left in debt and hopelessness after falling for the false platform’s AI-powered promises. Now, authorities are rushing to apprehend the scammers and stop similar ones in the future.
How Did the CBEX Crypto Scam Pull It Off?
CBEX positioned itself as a legitimate trading platform offering guaranteed monthly returns. Furthermore, it misrepresented US licenses and collaborations with ST Technologies International. It used the traditional crypto scam techniques of offering large profits, referral bonuses, and low risks through Telegram groups. To further establish credibility, the platform even acquired a token anti-money laundering certificate in Nigeria.
Edwin, who worked for the Kenyan government, lost $16,000 that he had borrowed from a bank. Initially, he saw small returns, prompting him to invest more. Furthermore, Adeoye, a Nigerian, was lured in by what he called a “juicy” offer. He lost about $450, and he wanted to cash out before the platform went down.
Investors Fall for Fake AI Trading Claims
According to CBEX, AI trading was used to guarantee consistent profits. However, blockchain specialists found that it was only using the TRON network to drain wallets. Kenyan crypto investigator Wycklife Sewe described how CBEX created systems to mimic live trading. Additionally, the funds were transferred immediately following each deposit and passed through several wallets to conceal their origin.
CBEX frequently rebranded and switched domains to evade detection. Despite media attention, the platform asked users to confirm their refund requests by making another payment. Therefore, re-scamming is a common tactic used in crypto scam operations.
CBEX claimed to have “compensated” users in a screenshot that was circulated on social media. However, this was merely another ruse. Once more, investors were duped into paying in the hopes of getting their money back. Blockchain analyst Specter linked CBEX wallets to Huione Guarantee, a darknet platform based in Cambodia connected to international cybercrime.
CBEX Crypto Scam Triggers Global Investigation & Alerts
Nigeria’s EFCC arrested two suspects and issued warrants for eight others after the collapse. The Capital Markets Authority of Kenya issued a warning to investors about unregulated platforms. Additionally, both nations are currently expediting their regulations to safeguard their citizens against similar frauds.
The Huione Group was designated a major money laundering concern by the US Treasury due to its involvement in CBEX withdrawals. This global spotlight is prompting Africa’s lawmakers to consider tougher rules for virtual asset trading. Therefore, the scope and intricacy of cryptocurrency fraud in Africa are no longer trivial.
Although optimistic investors are still drawn to AI trading, experts advise caution. Fraudsters are becoming more skilled at deceiving people by using cloned identities and false tech claims. The harm caused by CBEX has sparked a discussion about the best way to regulate digital assets across the continent.
The Lesson From CBEX
CBEX has now been labeled a scam in several Telegram groups, but for many, it’s too late. Abby, a Kenyan investor who unintentionally brought in 25 friends and family, is devastated. He echoed the thousands of broke people who said, “Never again.” An urgent need for education, supervision, and digital literacy is highlighted by the rise in crypto scams in Africa. Without it, trust will continue to be exploited by platforms such as CBEX.
About The Author
