Kenyan government worker loses $16,000 to CryptoBridge Exchange Ponzi scheme via Telegram promises

Summary

A Kenyan government worker named Edwin lost approximately $16,000 to the CryptoBridge Exchange (CBEX), a crypto-trading platform that operated as an AI-hyped Ponzi scheme. He was lured through Telegram with promises of guaranteed returns and referral bonuses, and the funds were largely sourced from a bank loan he now struggles to repay. CBEX collapsed in April 2024, affecting investors mainly in Kenya and Nigeria, with victims reporting significant financial losses. The platform used tactics such as brandjacking and false claims of legitimacy, including an anti-money laundering certificate from Nigeria’s EFCC, which clarified it was only for consultancy services. CBEX continued operations after its collapse and attempted to recover funds by charging users a "verification" fee, a known scam tactic. Nigerian authorities have arrested two individuals and issued warrants for eight others, while Kenya’s Capital Markets Authority issued an investor alert and is considering virtual asset regulation.