CBEX Collapse Leaves Thousands of Kenyans Devastated

Thousands of Kenyans have been left devastated by the sudden collapse of CBEX, an online trading platform that promised extraordinary returns through “AI-powered” crypto trading. The platform, which gained popularity in Kenya and parts of West Africa, lured investors with claims of earning up to KSh 30 million a month. However, behind the impressive dashboard and digital graphs, CBEX was operating as a cleverly disguised Ponzi scheme.

Victims like Celine Awuor, a finance professional, invested significant amounts, including life savings and loans, only to lose everything. Celine, who asked to remain anonymous, invested over a million shillings and knew someone who lost KSh 4 million. The platform's system was designed to manipulate users, with the more people invited, the more credible it appeared. Word-of-mouth recommendations from colleagues and friends added to the illusion of legitimacy.

John Mutai, another victim, began to suspect foul play when withdrawal conditions were tightened. CBEX claimed to trade using USDT, a stablecoin, but the system behaved erratically, with returns not matching market fluctuations. On April 14, the platform suddenly “traded” with 100% of user funds and lost it all, leaving victim accounts with zero balances. A message from someone named “Harold,” supposedly the team director, claimed the platform had been hacked, but it was later revealed that Harold was a chatbot on Telegram.

Adding insult to injury, CBEX began asking victims to pay more money to “verify” their accounts for fund restoration. Accounts with less than $1000 were told to pay $100, while those with more were charged $200. Victims were also asked to upload both sides of their national ID cards, including selfies while holding the documents, raising concerns about identity theft.

Crypto trader Kelvin Meli pointed out that the signs of a scam were always present. The unrealistic returns, the system's lack of response to real market conditions, and its operation as a classic pyramid scheme were all red flags. Meli warns that the victims' data is now at risk of being sold on the dark web or used to build another fraudulent platform targeting new users.

CBEX was more than just a scam; it was a masterclass in digital deception, preying on hope, trust, and the dream of quick wealth. It devastated families, shattered lives, and exposed the vulnerability of even seasoned professionals. As the dust settles, it is clear that this will not be the last crypto con to hit unsuspecting investors. The lesson from CBEX is that when the profits sound too perfect, they probably come with a cost.