Kenya Insights

Tag: CBEX Trading Platform

  • Nigerian Authorities Pursue Four Kenyans Over Hacked CBEX Crypto Trading Platform

    Nigerian Authorities Pursue Four Kenyans Over Hacked CBEX Crypto Trading Platform

    Nigerian financial crime authorities have launched an international manhunt for four Kenyan nationals allegedly involved in a cryptocurrency scam that has left investors across multiple African countries with significant losses.

    The Economic and Financial Crimes Commission (EFCC) of Nigeria has identified eight suspects, including four Kenyans, in connection with the Crypto Bridge Exchange (CBEX) platform breach that occurred approximately two weeks ago. The platform’s collapse wiped out user accounts across Kenya, Nigeria, and Egypt.

    According to a public notice issued by the EFCC on Friday, the Kenyan suspects are John Okiroh Otieno, Israel Mbaluka, Joseph Michiro Kabera, and Serah Michiro. All four had reportedly been residing in Lagos, Nigeria. Four Nigerian nationals were also named in the investigation: Seyi Oloyede, Emmanuel Uko, Adefowora Oluwanisola, and Adefowora Abiodun Olaonipekun.

    “The public is hereby notified that the persons whose photographs appear above are suspected foreign accomplices wanted by the EFCC for fraud allegedly perpetrated on an online trading platform called Crypto Bridge Exchange,” the watchdog stated in its notice.

    The CBEX platform had attracted significant attention across several African countries by promising investors AI-powered trading returns of up to 30 percent within just 30 days, along with lucrative referral bonuses and supposedly easy withdrawal processes.

    These promises came crashing down when users discovered their accounts had been emptied and withdrawals were suddenly impossible.

    Nigerian investigators have determined that CBEX was never properly registered or licensed to operate as a digital asset exchange in Nigeria or any other African jurisdiction.

    The Securities Exchange Commission of Nigeria found that CBEX “engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe.”

    The collapse of CBEX came to public attention earlier this month when users reported their cryptocurrency wallets had been “wiped clean” in what the platform initially claimed was a hacking incident.

    CBEX subsequently promised refunds beginning April 19, 2025, but later postponed this timeline to June 2025, citing an alleged audit by UK authorities.

    In a development that further alarmed investors, CBEX announced that users would need to pay verification fees ranging from $100 to $200 (approximately Ksh 12,961 to Ksh 25,929) before any refund processing could begin.

    The EFCC has reportedly engaged Interpol and the FBI to help track down the suspects.

    Meanwhile, Kenyan authorities have yet to publicly comment on the situation or launch their own investigation, despite Kenya having an estimated 730,000 cryptocurrency users who could potentially be affected.

    This case highlights the risks within Kenya’s active but currently unregulated cryptocurrency market, which the National Treasury intends to bring under the regulatory control of the Central Bank of Kenya and the Capital Markets Authority in the future.​​​​​​​​​​​​​​​​

  • I&M Bank Denies Involvement in CBEX Crypto Fraud Scheme as Interpol and FBI Take Over Investigation

    I&M Bank Denies Involvement in CBEX Crypto Fraud Scheme as Interpol and FBI Take Over Investigation

    A major Kenyan financial institution has found itself at the center of an escalating international fraud investigation, as I&M Bank fights allegations that it facilitated transactions for a cryptocurrency trading platform now accused of operating a multi-million dollar Ponzi scheme across Africa.

    I&M Bank has strongly denied any involvement with CBEX, the cryptocurrency trading platform at the center of a massive fraud investigation now being conducted by Interpol and the FBI.

    The bank issued a statement distancing itself from the alleged scam, which has reportedly defrauded investors across Kenya and Nigeria of millions of dollars.

    “I&M Bank is not involved in the operations of CBEX,” the financial institution stated in response to allegations made by researcher Antony Kagirison, who had linked the bank to the fraudulent scheme.

    However, the bank has not elaborated on whether it provided banking services to entities affiliated with CBEX or what due diligence measures were taken regarding the accounts in question.

    CBEX Operations and Allegations

    The Singapore-based Crypto Bridge Exchange (CBEX), which operated under various names including ST Technologies International Ltd and Smart Treasure/Super Technology, allegedly promised investors returns of up to 100 percent within 30 days.

    The platform is accused of running a sophisticated Ponzi scheme that targeted victims primarily in Kenya and Nigeria.

    According to Kagirison’s allegations, CBEX used a multi-currency consumer-to-business account at I&M Bank to receive funds from Kenyan ‘investors’.

    “CBEX has been using an I&M bank account to receive money from Kenyan ‘investors’ and converting it to dollars that were then used for trading in the futures market – specifically crypto futures trading,” Kagirison stated in documented communications allegedly with the bank.

    The scheme abruptly shut down operations after failing to honor withdrawal requests from thousands of investors, many of whom later discovered their wallet balances had reverted to $0.00.

    Scale of Losses and Enforcement Response

    Estimates of investor losses vary significantly. While initial reports suggested losses of $6.1 million, other sources claim figures as high as $800 million across Kenya and Nigeria.

    Cybersecurity experts have indicated that up to $1 million had been invested and lost by people worldwide in the scheme.

    The fraud’s magnitude has triggered the involvement of international law enforcement agencies, with both Interpol and the FBI now joining local authorities in the investigation.

    The collapse of the scheme has caused significant public outrage, with reports of angry investors storming and looting CBEX premises in both Kenya and Nigeria.

    For victims like Bola, a Nigerian investor who went viral after a video showed her weeping outside a CBEX office, the answers can’t come soon enough. “I collected all my friends’ money, all the money, which was like USD 1,000,” she said, explaining she had lost her entire life savings to the scheme.

    The CBEX case comes amid a significant increase in cryptocurrency-related fraud.

    According to a recent FBI Internet Crime Complaint Center (IC3) report covering January to December 2024, crypto-related scams led to the loss of approximately $9.3 billion, with crypto-investment scams accounting for about $5.8 billion of these losses.

    Overall, total losses traced to internet crimes amounted to about $16.6 billion, a 33% increase compared to the previous year. In 2024 alone, the FBI received almost 150,000 complaints related to fraudulent crypto schemes.

    Regulatory Implications

    Financial experts note that banks can potentially face liability for their role in facilitating fraudulent transactions, particularly if adequate anti-money laundering protocols were not followed.

    A recent study from the University of California, Berkeley School of Law suggested that holding banks accountable for their role in cryptocurrency transactions “would provide greater protection for investors and customers.”

    The Nigeria Securities and Exchange Commission has already denied any affiliation with CBEX, confirming the company was neither registered nor licensed to operate within the Nigerian capital market.

    “The commission is working with law enforcement agencies to take legal action against CBEX, its affiliates, and promoters,” a Nigerian SEC spokesperson stated.

    According to reports, authorities are particularly interested in tracing the money flow through traditional banking channels that enabled the scheme to operate across multiple jurisdictions.

    “The involvement of international law enforcement signals the seriousness of this investigation,” a Nigerian publication quoted an insider source. “They’re looking at the entire ecosystem that allowed this fraud to thrive, including the banking infrastructure that processed the transactions.”

    As investigations intensify, regulators across Africa are facing mounting pressure to establish stronger oversight of cryptocurrency platforms and the traditional financial institutions that service them.

    The CBEX scandal has highlighted significant regulatory gaps that allowed the alleged fraud to operate unchecked despite Nigerian authorities having previously flagged 58 companies operating illegally in the country’s investment space.

    I&M Bank has not responded to requests for further comment about their relationship with CBEX or any affiliated entities at the time of publication.

    Common Crypto Scam Tactics

    The FBI report identified several common tactics used in cryptocurrency investment scams:

    Pig butchering scams : Criminals fake online relationships with victims before luring them to invest in fraudulent crypto schemes. This method often targets older adults and led to losses of over $2.8 billion.

    FBI Operation Level Up identified almost 4,300 victims, with 76% unaware they had been victimized.

    Investment platforms : The most lucrative scams are disguised as investment and financial grooming platforms, with almost $11 billion lost to such platforms in 2024.

    Emerging techniques : New methods include QR code scams, crypto ATM fraud, stablecoin schemes, and the use of AI-generated personas to impersonate financial experts or online acquaintances.

    As cryptocurrency becomes more popular globally, law enforcement agencies and cybersecurity experts are working to update their tools and educate the public about these fraudulent tactics.

  • Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

    Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

    A section of Kenyans using a popular cryptocurrency and forex trading platform known as CBEX have lost their fortunes after their accounts were mysteriously emptied.

    CBEX had gained rapid traction among users in Kenya, Nigeria, and Egypt by promising incredible returns, fast withdrawals, and referral bonuses that seemed too good to be true.

    But over the weekend, those dreams were shattered when investors logged into their accounts only to find their balances at zero.

    As panic spread, CBEX’s response raised even more red flags—leaving users stranded and accusing the platform of running a sophisticated scam.

    Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

     

    CBEX Trading Platform Was A New Face of Old Scams

    The CBEX Trading Platform burst onto the scene with flashy promises of 30% returns in just 30 days, powered by what they claimed was “AI-based crypto and forex trading technology.”

    For a population already struggling with rising living costs, the allure of quick, passive income was irresistible. CBEX’s Telegram groups, WhatsApp chains, and social media posts painted a picture of financial freedom.

    Users were promised profits, commissions for referrals, and seamless withdrawals. Thousands jumped in. They deposited their savings—some using their children’s school fees, others pawning assets.

    But this past weekend, reality struck. Dozens of Kenyan users reported that their accounts had been drained. One investor recounted, “Today morning, I had about $6,000 (KSh777,680) in my CBEX wallet. By evening, it had been wiped clean.”

    And he wasn’t alone. “Several of my friends and relatives also lost everything. We are in shock,” he added.

    The hardest hit appeared to be users trading on CBEX’s AI-powered platform, which the company had aggressively marketed as revolutionary. The system, they claimed, could predict market movements with near-perfect accuracy using real-time data and machine learning.

    But when things went south, CBEX shifted blame to an external threat.

    Shifting Blame, Demanding More Money

    In a message sent via Telegram, CBEX claimed that “malicious fraud platforms” had hacked their AI systems, executing trades designed to confuse the AI and disrupt market order.

    They alleged the attackers used “massive full-margin operations” to cripple the system. However, for many affected users, this explanation rang hollow.

    CBEX’s solution? Force victims to pay more money to verify their accounts before any compensation could be processed.

    The platform announced that users with less than $1,000 in their wallets had to pay $100 for verification. Those with more than $1,000 had to cough up $200.

    “After depositing, compensation will be credited within 1-24 hours,” CBEX said.

    In other words, victims were being asked to pay a ransom to access their own money. Those who failed to comply by April 17 at 11:59 PM (UK time) would be permanently banned and marked as scammers, CBEX warned.

    The message left users feeling cornered and furious. Many took to online forums and local digital news platforms to call out the platform’s tactics as fraudulent.

    “If this isn’t extortion, what is?” asked one user on a Kenyan crypto Facebook group.

    Unregulated Platforms, Vulnerable Users

    CBEX’s shady operations highlight the dangers of Kenya’s unregulated crypto and forex market. While over 730,000 Kenyans are active in digital currency trading, there is no firm legal framework to protect them.

    The Central Bank of Kenya has previously warned citizens against using digital currencies, citing risks like fraud, volatility, and lack of recourse in case of disputes. Yet platforms like CBEX continue to operate unchecked, exploiting the regulatory vacuum and Kenyans’ financial desperation.

    “This isn’t the first scam and won’t be the last unless the government takes swift, decisive action,” said a local financial analyst who spoke to us anonymously.

    The Treasury is currently reviewing plans to regulate crypto trading platforms, including mandatory licensing and consumer protection laws. However, these measures may come too late for CBEX victims.

    Meanwhile, those affected are left trying to recover lost savings while CBEX continues to post promotional messages on its channels, trying to lure in new victims.

    Conclusion

    The CBEX Trading Platform has exposed a painful truth—Kenyans are being preyed on by unscrupulous operators hiding behind complex tech jargon and too-good-to-be-true offers.

    As long as the crypto space remains a legal grey area, more people will be trapped in similar schemes. The government must urgently regulate this sector, not just with rules, but with strict enforcement and public education campaigns.

    Until then, Kenyans must remain skeptical of platforms like CBEX that promise sky-high returns with minimal effort. Because when it sounds too good to be true—it probably is.