CBEX, a platform that promises AI-powered profits of up to 30 percent in 30 days, inexplicably emptied user accounts on Monday, leaving Kenyan cryptocurrency traders with severe losses. Some investors have reported total wipeouts of balances over $6,000 (about Sh777,000).
The firm attributed the problem to “malicious fraud platforms” that reportedly used market manipulation techniques to hack its AI trading system.
The platform had heavily advertised itself in Kenya, Nigeria, and Egypt with promises of quick riches and substantial referral bonuses.
CBEX demands verification fees
Instead of addressing these losses right away, CBEX imposed a startling requirement: impacted users must pay $100 or $200 in “verification fees” by April 17, depending on their prior balance, in order to get their money back. If they don’t, their accounts will be tagged “fraudulent” and permanently banned.
The contentious demand for further payment from investors who have already suffered has cast doubt on CBEX’s legitimacy, especially in light of reports of similar situations in Egypt and Nigeria.
The Virtual Asset Service Providers Bill of 2025, which would designate the Central Bank of Kenya and Capital Markets Authority as industry regulators with licensing and supervisory powers, is an attempt by Kenya’s Treasury to regulate the cryptocurrency sector. This makes the timing particularly noteworthy.
CBEX defrauds Nigerians of N1.3 trillion
The unregistered digital asset trading platform CBEX apparently disappeared with over N1.3 trillion from Nigerian customers’ wallets, leaving investors reeling from a startling turn of events.
After promising a 100 percent return on investment in 30 days, the platform abruptly crashed on Monday, sending investors into a panic mood.
