Unraveling the CBEX Ponzi Scheme: A Crypto Laundering Operation Dupeing Investors Cross-Chain
The CBEX crypto investment platform, which targeted investors in Africa, particularly in Nigeria, collapsed in early 2025 after being unveiled as a large-scale Ponzi scheme. The scheme defrauded investors of nearly $1 billion[1][5].
The operators of CBEX employed a tactic called chain-hopping, where funds deposited by users on the Tron blockchain were swapped to Ethereum via cross-chain bridges, then moved back to Tron through multiple wallets[1][5]. This process significantly obscured the transaction trail and increased the difficulty for investigators tracing illicit funds.
One noteworthy entity that received funds from CBEX is Huione Pay, a Cambodian-based service heavily associated with the laundering of scam proceeds[1]. Cross-chain bridges, which do not require KYC, enabled anonymous transfer and laundering of the stolen funds[1][5].
Law enforcement and investigations have been underway, with African agencies like the EFCC involved due to the scam's impact on users, especially in Africa[4]. Blockchain analytics firms like Elliptic have been key in uncovering the sophisticated laundering techniques behind CBEX and raising awareness about the broader surge in cross-chain crypto crime[1][5].
The fallout from CBEX's collapse has resulted in reported losses exceeding $800 million[2]. After its collapse, CBEX attempted to reinvent itself by launching new schemes and adopting new partnerships, such as a purported alliance with "ZS Exchange Group," which appears to be unverifiable and possibly fictitious[3]. They also spun off a related platform called HHHE, which claims to have regulatory licenses that are questionable and likely fraudulent[3].
The brand name Investigator can automatically trace cross-chain bridging transactions, reducing the workload from several hours to mere minutes[6]. VVTEs (virtual value transaction events) are used by the Investigator to link origin and destination wallets in cross-chain bridging transactions[7]. The Investigator applies VVTEs on over 300 bridging combinations[7].
As of July 2025, the CBEX website remains offline[8]. The Nigerian Securities and Exchange Commission posted a warning against CBEX on 17 April 2025[9]. Transfers to and from a Tron-based DEX were found for the purpose of swapping USDT to TRX to finance large-scale bridging activity[10].
The tactic of chain-hopping is a growing money laundering technique in the crypto space since 2020[11]. In May 2025, Huione Pay was designated as a 311 Primary Money Laundering Concern by the US Financial Crimes Enforcement Network (FinCEN)[12]. Funds sent by CBEX were found to be sent in large batches to numerous centralized exchanges after both stages of bridging[13].
In summary, CBEX is currently defunct as a legitimate platform, exposed as a Ponzi scheme engaged in advanced cross-chain laundering methods, with ongoing investigations and no refund to victims. Its operators continue to attempt to evade accountability through new fraudulent ventures[1][3][5].
References: 1. Source 1 2. Source 2 3. Source 3 4. Source 4 5. Source 5 6. Source 6 7. Source 7 8. Source 8 9. Source 9 10. Source 10 11. Source 11 12. Source 12 13. Source 13
- The collapse of the CBEX crypto investment platform, a Ponzi scheme that defrauded investors of nearly $1 billion, highlighted the rising issue of cross-chain crypto crime and the need for advanced blockchain forensics.
- Elliptic, a blockchain analytics firm, played a key role in uncovering the sophisticated laundering techniques employed by CBEX, raising awareness about the broader surge in cross-chain crypto crime.
- The use of cross-chain bridges, which do not require KYC, enabled anonymous transfer and laundering of the stolen funds from CBEX, making investigations more challenging.
- Ongoing investigations into CBEX's collapse involve law enforcement agencies and African regulatory bodies, such as the EFCC, due to the scam's impact on users, particularly in Africa.
- As of July 2025, the tactic of chain-hopping, a growing money laundering technique in the crypto space since 2020, continues to pose a significant challenge in finance and cybersecurity, particularly in challenging cross-chain investigations.
