Crypto Scams Soar in Kenya: CBEX Users Lose Millions
Crypto scams have been on the rise in Kenya, with millions of dollars lost over recent years. The latest incident involves the CBEX cryptocurrency and forex trading platform, where numerous Kenyans have seen their investments vanish. CBEX promised high returns, attractive referral bonuses, and easy withdrawals to lure users in Kenya and West Africa. However, users who traded cryptocurrencies using the platform's AI system have been the most affected, with similar issues reported in Nigeria and Egypt. The platform attributed the loss of funds to security breaches, but many remain skeptical. In 2022, Kenya's then Minister of ICT, Joe Mucheru, revealed that Kenyans had lost over $120 million to crypto scams in just one year. CBEX initially assured users that they would be reimbursed for their losses, but this required users to pay a verification fee ranging from $100 to $200. This has left many users feeling exploited and frustrated. The Kenya Virtual Assets Service Providers Bill 2025 aims to enhance consumer protection and mitigate issues related to virtual asset activities and service providers. Meanwhile, the identities of those suspected to be behind the CBEX fraud remain unknown. Kenyan authorities and international bodies like the EFCC Nigeria are investigating the matter. Several Kenyan users continue to report losses on CBEX over the weekend, highlighting the urgent need for stricter regulations and consumer protection in the crypto industry.
