10 Lessons from the CBEX Ponzi Scheme

The CBEX Ponzi Scheme is a ghastly reminder that thousands could be herded into an avoidable ruin by the forces of financial desperation, negligence in due diligence, and promises of quick riches. Like many Ponzi schemes, CBEX lured the innocent into its embrace with glitzy returns and confident testimonials, all skillfully marketed on a suave platform that disguised a faulty and fraudulent business model underneath. 

When CBEX was introduced, it didn’t appear to be a scam but an opportunity; a means to escape poverty, an intelligent passive income stream, or even a shortcut to freedom. It had the right kind of language, branding, and perfect testimonials. People were cashing out. Friends were referring friends. Groups were buzzing. And before long, thousands of Nigerians had dedicated their heart, soul, and wallet.

Until one day it just stopped.

Accounts were frozen, withdrawals were denied, and support was lacking. The website failed. And suddenly, it all fell into place: it was never what it claimed to be. It was a Ponzi scheme. And like every Ponzi scheme before it, it fell through in the end, leaving destruction in its wake, loss of savings, and bitter lessons learned.

But it was not just a scam. It was a lesson, albeit a very hard one, leaving many poorer, disappointed, and extra careful. No pain is wasted through the learning. Every mistake, especially those relating to money, can be a teacher — if we are willing to learn. 

In this article, I will discuss ten lessons worth learning from the CBEX Ponzi Scheme—lessons that you must remember in your future financial decisions.

1. If it sounds too good to be true, it probably is

Let’s begin with the most obvious lesson – and the most ignored lesson. CBEX promised “up to 5% daily returns.” Now, let us do the math: for example, if I invested ₦100,000, I should be making ₦5,000 every single day- it makes ₦150,000 per month without lifting even a finger.

Just compare that with banks. Even fixed deposits do not give more than 10% per year. The stock market promises good returns with accompanying risks and volatility, and it is nowhere close to being that stable. What about real estate? Around 12-15% a year if lucky. 

So, how could CBEX consistently give such a wonderful ongoing return? 

Answer: It couldn’t. Not in a lawful, sustainable way and certainly not in reality.

That is why “too good to be true” feels good at the moment, but never built to last. When receiving an offer promising sky-high returns with zero effort or risk, pause. Real investments do not work like that.

2. Greed will blind you- if you let it

Greed is not wanting more: it wants more, faster, and at any cost. That’s what draws people into scams such as CBEX.

Let’s be real: most of us had doubts. Still, most of us invested. Why? Because we wanted in on the profits. We were seeing money going into people’s pockets, people sharing out cash, and new cars. Rather than stop and ask, “Is this real?” we wondered, “How much can I make?”

Greed doesn’t just blind: it silences your instincts. You begin justifying the red flags. You say things such as: “At least I have made my capital back.”, “Even if it crashes later, I will double my money.”, “My friend is doing it, and he is cashing out, so it must be safe.” 

But scams do not crash softly; instead, they crash hard. When they do, the empty shell of greed leaves nothing behind except regret. The lesson? Never allow the desire for quick money to overpower the need for wisdom.

3. Do your research — every single time

One of the biggest blunders people made concerning CBEX was trusting the crowd. WhatsApp messages, YouTube testimonials, Facebook groups, and self-proclaimed “mentors” who didn’t understand what they were promoting. But nobody thought to ask, what does CBEX really do?

How does it generate revenue? Who are the people behind it? Is it licensed by some regulatory body? Does it have a physical address? How long has it been in existence? Where are its audited financials? Most were never able to answer those questions because most never asked. And by the time the truth comes out, it is too late. 

If you cannot explain in very simple words how a business makes money-and where your return is coming from, then there’s no business putting your money there. Due diligence is not optional; it is your responsibility. 

4. Referral commissions are not a business model

CBEX offered juicy referral bonuses of up to 15% from your downline’s investment. It was no longer an investment model, but a recruitment model. The more people you brought in, the more money you made. 

The main problem with this is that any system where money flows only when new people sign up is a textbook Ponzi. That is not sustainable. There is no product or service behind it. All it does is recirculate money from new investors to old ones. 

The moment new signups slow down, it’s the end of the system- and that’s just what happened with CBEX. It was a situation where inflow stopped completely, and withdrawals stopped too. And, just like that, the music ended.

If you ever get caught in something where most of your earnings would depend on persuading others to “join” and then “invest” each day without understanding what’s being bought, run away. 

5. Do not trade other people for your own profit 

So many people pulled friends, family, and work colleagues to CBEX, not because they trusted it, but because they could earn some referral commission. Many even borrowed money just to invest in the scheme. People convinced whole church groups or offices to come on board. 

It crashed, and people did not just lose money. They also lost trust, friendship, and relationships. Some even received threats. The damages were greater than just money.

CBEX taught perhaps the most important lesson: your reputation is worth more than any referral bonus. Don’t endorse something you do not understand. Don’t market something you can’t defend. Don’t gamble with people’s trust to make quick money.

6. Quick money is fool’s gold

Everyone covets quick riches, and that is what made this CBEX thing attractive. It meant that you wouldn’t have to wait an agonizingly long time of even months or years-you could cash out daily.

The fact of the matter is that it’s usually fast money that doesn’t last long. Real wealth takes time-has to be slowly built through discipline, investment, and patience. If something comes too quickly, it usually goes just as fast. Just think of all those who really made it from CBEX; where are they now? Most reinvested their earnings into CBEX, and when the site went down, all of them were left with dust.

Speed is not a strategy for finance; sustainability is.

7. Emotion is the enemy of financial wisdom

If you invested in CBEX, it wasn’t because you had undertaken a full risk analysis. It was mostly because you felt something: 

• Desperation to escape poverty
• Fear of missing out
• Excitement because of others winning
• Hope that this could be your big break

That is the trap. Ponzi schemes do not appeal to logic but to emotion. They say what you want to hear, and then they create hype, urgency, and illusion.

But emotion is the greatest danger when it comes to making money decisions; it makes you impulsive and clouds your judgment. It impels you to act on impulse rather than on information.

Train yourself to pause. Breathe. Read the fine print. Sleep on it. Ask someone smarter than you. The fewer emotions you have in your financial decisions, the fewer scars you’ll have.

8. No regulation = no protection

CBEX was unregulated. It was not registered with any financial authority. There were no investor protections, no audited records, and no supervision.

When it crashed, people went and reported to the police-but it was too late. The money had vanished. The founders were faceless. The platform was gone. There was no one.

This is what happens when you deposit money in unregulated systems. You sacrifice legal protection.

Always check if an investment is regulated. Is it licensed by the SEC or CBN? If something goes wrong, do you have legal recourse?

Unregulated = unprotected. And when the going gets tough, you are on your own.

9. You don’t need every opportunity

Everyone wants money, and in Nigeria, where opportunities seem limited, you develop this panic behavior of having to grab every opportunity that comes. We say, “What if this one is the real deal?” or “Let me just test it with a little money.”

That is a dangerous mindset.

You don’t need to seize every opportunity. You need to recognize the opportunities that matter. Some are distractions that steal your time, your peace, and your money.

The real opportunity lies in mastering just one or two proven things and doing them persistently over time. This could be saving and investing wisely. It could be learning a skill. It might build a legit side hustle.

CBEX reminded us that chasing every shiny thing could cost you more than you think.

10. Losing money is not the end; not learning is

Assuming you’ve lost money in CBEX, your savings, money that you borrowed, or maybe just “play money.” Whatever the case, it hurts. 

But here comes the good news: that isn’t the end. 

You are not foolish; you are not cursed; you are not the only one. What matters now is what happens next. 

Will you jump into another of these “new opportunities,” hoping to recoup what you’ve lost, or take a moment to collect yourself, reflect, and wiser up to recovery? 

Here are some steps to avoid falling into the same trap twice:

• Turn your loss into a turning point. 
• Learn how money works. 
• Get yourself enrolled in a personal finance course. 
• Start investing in real assets. 
• Build up an emergency fund. 
• Learn to delay gratification. 
• Invest in your skills. 

Scars do not have to signify failure; they can show that you survived and grew. 

Conclusion

That was a painful chapter for CBEX. However, like every storm, it was there to teach lessons- should one dare to learn from it. 

Don’t beat yourself up for being affected. Instead, turn it around so it doesn’t go to waste. Let it awaken you. Let it sharpen your financial senses. Let it mold and shape how you handle cash henceforth. 

Financial wisdom is not just a tool but a protection for well-being in this life. The next time something shiny drops into your DM or timeline, just remember CBEX. And walk away.