Al-hyped ponzi scheme defrauds African investors

EMBARRASSED and in debt, Edwin was left reeling after losing $16 000 to CryptoBridge Exchange (CBEX), one of the crypto-trading platforms preying on investors in Africa.

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Edwin, a Kenyan government worker who only gave his first name out of shame, first encountered CBEX on Telegram, a messaging app.

He was lured with promises of guaranteed monthly returns made possible by AI-powered trading systems, with lucrative referral bonuses — classic hallmarks of Ponzi schemes.

“I had very big plans. But I was conned both by the platform and an agent who lied he could help recover my money,” Edwin said.

When he began investing last August, there were initial returns, leading him to invest more despite lacking prior cryptocurrency trading experience.

In total, he believes he lost roughly $16 000), mostly from a bank loan he is now orried about needing to repay.

Blockchain analysis firm Chainalysis says some $9.9 billion was lost to crypto scams globally last year.

Such scams are not new in Africa, but their scale and sophistication has grown as cryptocurrency spreads.

CBEX collapsed in April, leaving scores of investors like Edwin ruined, mainly in Kenya and Nigeria, according to media reports.

Confirmation from accessing messages on CBEX’s private Telegram groups that it has since rebooted its operations despite ongoing investigations and warnings by authorities.