In the world of online investment fraud, one thing remains reliably consistent: African regulators often arrive just in time — after the money is gone, the victims hospitalized, and the scammers vanished into thin air. Two recent cases from Nigeria and Egypt demonstrate this all-too-familiar pattern, raising questions about the preparedness of securities watchdogs and the persistent allure of quick riches.
CBEX: A Crash, a Collapse, and Now, Hospital Bills
Nigerians were left stunned on Monday after the sudden crash of CBEX, a digital investment platform that promised incredible returns and delivered equally staggering losses. With reports suggesting over ₦1.3 trillion vanished from investors’ wallets, the platform locked its Telegram groups, postponed all withdrawals, and began offering curious compensation packages — $200 for those who deposited $2,000, and $100 for lesser investors. A generous gesture, if it weren’t so dystopian.
The Nigeria Securities and Exchange Commission (SEC) confirmed that CBEX was operating without any legal registration or oversight. But that information only seemed to surface after the collapse. Until then, CBEX’s promises of doubling deposits and AI-powered trading systems kept its growing base of users blissfully unaware — or willfully blind.
For some, the financial shock quickly turned physical. In Ibadan, a city in south western Nigeria, over two dozen victims were reportedly hospitalised due to emotional trauma and stress-related complications. Sherif Latifu, a local resident, pleaded with Governor Seyi Makinde to subsidize hospital bills. “This is a major crisis in Ibadan,” he said.
Taiwo Owolabi, a cryptocurrency analyst, estimated over $847 million had been siphoned off through sophisticated laundering. CBEX’s structure, he explained, followed a typical Ponzi format, where new deposits funded older withdrawals — until there was nothing left to shuffle.
“Their weak website was designed to look like a cybersecurity breach was to blame,” said Owolabi. “In reality, what users saw were just numbers on a screen. The trading? Fake. The profits? Imaginary. And the money? Long gone.”
In a reactive (if tardy) response, the Nigerian SEC issued warnings, citing the Investment and Securities Act of 2025, which makes it a criminal offense for unregistered platforms to offer trading services. Of course, this information would have been helpful a few trillion naira ago.
FBC in Egypt: Promises, Pyramids, and a Platform that Disappeared Overnight
Not to be outdone, Egypt, in February, offered its own tale with the collapse of the FBC platform, which, according to the Ministry of Interior, duped over 100 people out of nearly EGP 2 million (unofficial figure claims $6 billion). A series of arrests led to 13 individuals being detained, along with an impressive collection of 1,135 SIM cards, foreign currencies, laptops, and EGP 1.27 million in cash.
FBC, much like its Nigerian counterpart, presented itself as a legitimate investment firm, complete with tales of a global presence, a headquarters outside Egypt, and even a fictitious collaboration with the Egyptian government to reduce unemployment. The platform promised generous returns for watching YouTube videos and completing online “tasks” — a model that, astonishingly, convinced hundreds of people to part with their savings.
Among the most tragic stories was that of Nancy from Minya, who invested EGP 11,200 (~$350) on a friend’s recommendation, only to be left with nothing. Another victim, Mohamed Omar, and his wife invested EGP 22,000 before noticing the dreaded “withdrawal restrictions” that always seem to precede a Ponzi collapse.
Investigations uncovered a criminal network led by three foreign nationals and 11 accomplices who had set up a fake company in Cairo as a front. Their pyramid-style referral system rewarded users for bringing in new investors — another telltale sign regulators didn’t seem to spot until it was far too late.
Cybersecurity experts also dismissed FBC’s claim of a cyberattack, instead identifying it as a textbook exit scam. To make matters worse, user data has now appeared on the dark web, raising concerns about further identity theft.
Too Little, Too Late?
Despite the numerous arrests and stern warnings, both the Nigerian and Egyptian cases illustrate a wider malaise: regulators stepping in after the damage is done. While it’s commendable that law enforcement eventually acted, the delay in preventive oversight begs the question — what exactly are securities commissions doing during the rise of these platforms?
The answer may lie in a mix of institutional inertia, limited technological capability, and the simple fact that economic desperation often outpaces regulatory enforcement. For many victims, FBC and CBEX offered a mirage of stability in increasingly volatile economies.
And for the fraudsters? Well, they often escape into the shadows, wallets full, identities cloaked, and their next platforms already quietly being built.
A Repeated Warning
The cycle repeats itself: slick websites, social media ads, testimonials, then referrals. Promises of effortless wealth. And finally, silence. While authorities promise stronger crackdowns, both CBEX and FBC show that in Africa’s digital wild west, the rule still stands: the regulator always arrives after the party ends, when the lights are off and the money’s gone.