Binance has warned cryptocurrency users across Africa to remain vigilant against a growing number of Ponzi-style investment schemes posing as legitimate digital asset platforms, as crypto adoption continues to expand across the continent.
- Binance has warned cryptocurrency users across Africa to remain vigilant against a growing number of Ponzi-style investment schemes posing as...
- In a statement issued on Thursday, the exchange said fraudsters are increasingly exploiting interest in cryptocurrencies by promoting investment opportunities...
- According to Africa Check, Nigerian investors lost an estimated $1 billion to CBEX alone.
- The scheme affected more than 100,000 victims across at least 17 countries, including Nigeria, Kenya, and Cameroon, with investigators estimating...
Keep reading for the full breakdown on Binance — everything you need to know is covered below.
In a statement issued on Thursday, the exchange said fraudsters are increasingly exploiting interest in cryptocurrencies by promoting investment opportunities that promise high or guaranteed returns while disguising themselves as legitimate trading or wealth-building platforms.
The warning comes months after the collapse of Crypto Bridge Exchange (CBEX), a platform that left thousands of investors in Nigeria and Kenya unable to access their funds. The platform had attracted users with promises of high returns through what it described as AI-powered trading operations.
What Binance says about the Ponzi schemes in Africa
Commenting on the trend, Larry Cooke, Africa Head of Legal at Binance, said scammers frequently rely on urgency, impersonation, and promises of guaranteed returns to attract victims.
“Scammers are constantly adapting their tactics, often creating a sense of urgency or using impersonation to gain trust,” Cooke said. “Ponzi schemes in particular rely heavily on trust and word-of-mouth momentum, which is why it is so important for users to question any platform or individual promising guaranteed returns.”
Binance said it blocked about 22.9 million scam and phishing attempts during the first quarter of 2026, protecting an estimated $1.98 billion in user funds.
The exchange added that it does not offer guaranteed returns or investment programmes that require users to transfer funds to third parties, and urged users to verify information through official channels before committing funds to any investment opportunity.
In 2025, a Kenyan investor identified as Edwin told AFP that he lost about 2.1 million Kenyan shillings after investing in CBEX. According to Africa Check, Nigerian investors lost an estimated $1 billion to CBEX alone.
In the same year, Nigeria’s Securities and Exchange Commission reported that Nigerians lost about ₦300.2 billion to fraudulent investment schemes.
Binance said Ponzi schemes typically operate by using funds from new participants to pay earlier investors rather than generating returns through legitimate business activities. The exchange noted that many recent schemes have adopted cryptocurrency and artificial intelligence-related terminology to attract investors and create an appearance of legitimacy.
The issue has also attracted the attention of law enforcement agencies. In 2025, Techpression reported on INTERPOL’s crackdown on cybercrime and crypto fraud. Under Operation Serengeti 2.0, authorities arrested more than 1,200 cybercriminals across 18 African countries and the United Kingdom between June and August.
The operation recovered about $97.4 million, took down more than 11,000 malicious online networks, and revealed how widespread cyber fraud remains worldwide.
The crackdown underscored the global reach of cybercrime and the urgent need for cross-border cooperation in an era when scams can spread across multiple jurisdictions within minutes.
Also, during Operation Catalyst, an INTERPOL-coordinated operation conducted between July and September 2025, authorities uncovered a fraudulent investment scheme disguised as a trading platform. The scheme affected more than 100,000 victims across at least 17 countries, including Nigeria, Kenya, and Cameroon, with investigators estimating losses at about $562 million.
The rise in such schemes comes amid continued growth in cryptocurrency adoption across Africa. According to blockchain analytics firm Chainalysis, Sub-Saharan Africa recorded more than $205 billion in on-chain transaction value between July 2024 and June 2025, representing a 52 per cent increase from the previous year.
Nigeria remains one of the region’s largest cryptocurrency markets, processing an estimated $59 billion in crypto transactions in 2024.
On a global scale, Ponzi and pyramid schemes received about $6.1 billion from victims in 2025, a 49 per cent increase from 2024. Stablecoins accounted for 84 per cent of fraud-related inflows during the year, according to data from TRM Labs.
As fraudsters continue to target new crypto users across the continent, understanding the warning signs of a Ponzi scheme has become increasingly important.
How to spot a crypto Ponzi scheme
Crypto Ponzi schemes often share several common characteristics regardless of the platform or market in which they operate. One of the most common warning signs is the promise of guaranteed or unusually high returns with little or no risk. Legitimate investments can generate profits, but they are always subject to market conditions and the risk of potential losses.
Another red flag is a lack of transparency about how returns are generated. Fraudulent schemes frequently use complex terminology, including references to artificial intelligence, trading bots, or proprietary algorithms, without providing verifiable evidence that such systems exist or are generating revenue.
Investors should also be cautious of platforms that place heavy emphasis on recruiting new participants. In many cases, returns paid to existing members come from money contributed by newer investors rather than from legitimate business activity. This model eventually becomes unsustainable as new deposits slow.
Difficulty withdrawing funds can also signal potential fraud. Many victims only discover problems when they attempt to access their money and encounter delays, restrictions, or demands for additional payments before withdrawals can be processed.
Investors should conduct independent research, verify the credentials of any investment platform, and remain sceptical of opportunities that appear too good to be true. Recent cases across Africa show that fraudsters continue to adapt their tactics, often using new technologies and investment trends to lure victims.