One would think the MMM saga of 2016 was a turning point. Apparently not.

I’ve watched these stories back-to-back with a familiar sense of déjà vu. The emotional videos. The looted offices. The TikTok tears. And at the centre of it all—deceitful promises of wealth. CBEX promised to double your money in weeks. People believed it. Why?

The answer can be found somewhere between desperation and blind hope. Nigeria’s economy has tightened its hold on many, especially young people. 

Jobs are scarce, inflation is suffocating, and honest income feels too slow to catch up with daily needs. So, when a platform like CBEX shows up with smooth talk and fast returns, it starts to look less like a scam and more like a saviour.

But it never is.

Take Pretty Nikky Babe, for instance—a TikTok user who posted a tearful video with the caption: “CBEX don carry my savings.” Her pain is raw, and unfortunately, it’s shared by many people. 

One woman, Bola, stood outside the ransacked CBEX office in Ibadan weeping, not just for herself but for the friends whose money she collected and invested—over $1,000 in total. “Me 200 dollars, but I collected all my friends’ money… all the money 1,000 dollars,” she sobbed. That’s more than a financial loss, as it involves communal shame.

The emotional fallout was inevitable. On Monday, a mob descended on CBEX’s office in Oke Ado, Ibadan. They didn’t come with petitions or placards. They came for revenge. They carried off furniture, solar panels, anything they could find. The videos went viral. So did the anger.

But this isn’t new.

Dr Penking wrote on X: “Nigerians never Learn. This is the list of Ponzi schemes that have made away with Nigerians’ hard-earned money yet they still fall mugu…” And the list is long. From MMM Nigeria to Ultimate Cycler, Get Help Worldwide to Baraza, and now CBEX—more than 40 names have fleeced Nigerians over the last decade.

So why do people keep falling?

Greed? Maybe. But that’s not the full story. It’s also about the hopelessness many feel. The belief that the system doesn’t work, that no one is coming to help, and that hustling—any kind of hustling—is better than staying broke. 

Al’ameen wrote: “You are not an investor when you put your money in CBEX or any ponzi scheme. You are just a greedy gambler that’s desperate to make money out of anything.”

Still, it’s not always greed. Sometimes, it’s misinformation. Sometimes, it’s peer pressure. Sometimes, it’s just plain desperation. A young man told BBC Pidgin he lost ₦450,000—money he was about to withdraw until a friend told him to be patient. Then CBEX crashed. Another lost $16,000. One victim, Oguonu Nchedo Esther, wrote online: “My kids are just crying as if someone died… all the hopes I gave them are just scattered… we are back to zero.”

CBEX admins reportedly moved over $822 million into a private Ethereum wallet. According to @Crypto4bailout on X, “CBEX Admin Stole $913,000,000 from Gullible Users.” The scale of theft is unimaginable. And the fact that the Securities and Exchange Commission (SEC) had earlier flagged the platform as unregistered only adds salt to injury.

But, why do SEC warnings fall on deaf ears?

Because many Nigerians don’t trust institutions anymore. The same government that issues these warnings is seen as corrupt and uncaring. So people rely on word-of-mouth, Telegram groups, and social media influencers—many of whom hype these platforms for a cut.

The CBEX crash is not the end of Ponzi schemes in Nigeria. Sadly, it’s just another chapter. People are angry now, but give it time, and another ‘opportunity’ will rise—another promise, another platform, another loss.

In the end, we can’t keep blaming ignorance. There are too many examples, too many warnings. At some point, we have to admit we have a problem with easy money.

We want to skip the queue. We want wealth without the wait. But that shortcut almost always ends in regret.

And until we change that mindset, CBEX won’t be the last.

• The rising popularity of cryptocurrency has attracted a surge of scammers preying on both new and experienced investors.
• Common scams include fake exchanges, phishing emails, Ponzi schemes, impersonation fraud, and malware attacks, leading to significant financial losses.
• Online security expert Richard D. advises using reputable exchanges, enabling VPN protection, and staying vigilant to navigate the crypto market safely.

Cryptocurrency has never been more popular. Bitcoin continues to hit record highs, and even public figures like Donald and Melania Trump are launching their own coins. 

With millions joining the crypto frenzy, scammers are seizing the opportunity to exploit the uninformed. “Scammers thrive on hype,” says Richard D, an online security expert at VPN Pro. “The more people rush into crypto, the easier it is for bad actors to exploit their lack of knowledge.”

From fake exchanges to phishing schemes, here are some of the most common crypto scams and how to avoid them.

8 Common Crypto Scams and How to Avoid Them

1. Fake Cryptocurrency Exchanges

Scammers create convincing replicas of legitimate crypto platforms, luring users to deposit funds that become impossible to withdraw. These fake exchanges are usually promoted through phishing links and social media ads, making them seem authentic.

How to Stay Safe:

Verify exchanges through independent reviews.

Ensure the platform is registered with relevant regulatory authorities.

Stick to reputable exchanges like Coinbase, Binance, or Kraken.

2. Phishing Emails

Fraudsters send emails that mimic official crypto platforms, tricking users into clicking malicious links or sharing private keys. These emails often contain urgent warnings to pressure victims into taking action.

How to Stay Safe:

Double-check email senders and website URLs.

Never click on unsolicited links.

Remember, legitimate platforms will never ask for private keys via email.

3. Ponzi Schemes

These scams promise guaranteed high returns by using funds from new investors to pay earlier participants. They rely on testimonials, influencers, and hype to attract victims before ultimately collapsing.

How to Stay Safe:

Be sceptical of investments that promise high, consistent returns.

Research thoroughly and avoid schemes that depend on recruitment.

4. Fake Initial Coin Offerings (ICOs)

Scammers create elaborate websites, whitepapers, and marketing campaigns to promote non-existent blockchain projects. They collect funds from investors before vanishing.

How to Stay Safe:

Research the project’s team, partnerships, and technology.

Look for verified information on trusted blockchain platforms.

5. Pump-and-Dump Schemes

Scammers buy large amounts of a low-cost cryptocurrency, artificially inflate its value through hype, then sell off their holdings, leaving other investors with worthless coins.

How to Stay Safe:

Avoid investments driven by social media hype.

Focus on cryptocurrencies with transparent teams and real-world use cases.

6. Impersonation Scams

Fraudsters create fake profiles of celebrities, influencers, or crypto companies, promoting fake giveaways or investment opportunities. Victims send funds, only for the scammer to disappear.

How to Stay Safe:

Verify accounts with blue checkmarks.

Remember, legitimate figures never ask for upfront payments for giveaways.

7. Social Media Scams

Scammers use fake accounts or groups on platforms like Twitter, Facebook, and Telegram to promote fraudulent token giveaways, phishing links, and fake ICOs.

How to Stay Safe:

Always verify the authenticity of social media accounts.

Never share wallet details, private keys, or sensitive information.

8. Malware Attacks

Some malware can infiltrate devices via fake crypto apps, phishing links, or malicious downloads. Hackers use these tactics to steal private keys or redirect transactions to their own wallets.

How to Stay Safe:

Keep antivirus software updated.

Download apps only from trusted sources.

Double-check wallet addresses before confirming transactions.

Why a VPN is Essential for Crypto Security

Beyond avoiding scams, protecting online activity is neccessary for crypto users.

A VPN (Virtual Private Network) creates a secure, encrypted connection, hiding users’ IP addresses and safeguarding their online transactions. Public Wi-Fi networks are especially risky, as hackers can intercept data—but a VPN protects against these threats.

Some VPNs, like VPN Pro, offer malware blocking, ad blocking, and phishing protection, providing an extra layer of security against crypto-related scams.

“The rapid rise of cryptocurrency has transformed the way we think about money, but it has also opened the door to unprecedented levels of online fraud,” says Richard D.

“Staying ahead of these threats requires a proactive mindset. Educate yourself about the risks before entering the crypto market. Use trusted sources to research platforms, and never rush into an investment based on pressure or promises of quick returns. 

“Secure your online presence by avoiding public Wi-Fi when accessing trading accounts, or better yet, use a VPN to safeguard your activity. By staying informed and cautious, you can navigate the crypto space confidently and minimize your risk of falling victim to scams.”

The crypto market brings incredible opportunities but also huge risks. Scammers prey on fear, urgency, and misinformation—so staying informed is the best defense. 

In using reputable exchanges, verifying sources, and securing your online presence with tools like VPN Pro, you can trade safely and protect your investments.