A section of Kenyans using a popular cryptocurrency and forex trading platform known as CBEX have lost their fortunes after their accounts were emptied.
CBEX had captured the attention of many Kenyan and West African users in recent weeks with promises of AI-powered super profits, lucrative referral bonuses and easy withdrawals. Investors had been promised returns of up to 30 percent in just 30 days.
However, some users of the CBEX platform in Kenya are counting their losses after their cryptocurrency accounts were wiped out over the weekend.
“Today morning, I woke up with like $6,000 (Sh777,680) in my crypto wallet. But at around 7pm it had been cleared to zero,” one user whose account was wiped out on CBEX told the Business Daily.
A cryptocurrency is a digital form of money that is not issued or controlled by any monetary authority and is traded online via digital exchanges and marketplaces.
“Several of my relatives and friends have also reported clearing on their accounts and it is terrible,” the CBEX user added.
Similar concerns have emerged in Nigeria, where CBEX has a large client base alongside Egypt. Those most affected are those who traded crypto on the CBEX’s AI platform.
The CBEX team has blamed the account wipes on alleged breaches on its AI-based trading platform.
“After thorough investigation, we have discovered that some malicious fraud platforms have used hacking methods to implement targeted attacks on our trading system, deliberately conducting operations that are contrary to the signals of the AI trading system, severely disrupting the market order,” the company said in a message to the affected client via the Telegram messenger platform.
“Those attackers employed various tactics, including massive “full-margin” operations to collectively hedge and suppress the market at the moment AI systems trading signals,” it claimed.
Full margin refers to trading with the maximum amount of funds allowed, significantly amplifying both potential profits and losses.
CBEX claimed that users would be compensated for the losses once their accounts had been authenticated.
“We are fully aware that a large number of individuals have suffered losses, and therefore we need to provide sufficient time to resolve this matter. The deadline is three days from now, ending at 23.59 UK time on the 17th (April),” the platform said.
“Any accounts that have not been confirmed and claimed within the timeframe will be treated as fraudulent accounts associated with scammers and will be permanently banned, with no further claims accepted in the future,” CBEX added.
But in a move that has further rattled users, the CBEX team said that it would charge them to verify their accounts before processing them.
Those with less than $1,000 (Sh129,613) in their accounts will have to pay $100 (Sh12,961) for verification, while those with more than $1,000 will have to part with $200 (Sh25,929).
“After depositing, compensation will be credited within 1-24 hours,” CBEX said.
The cryptocurrency market remains a hot potato in Kenya even as the Treasury moves to regulate it.
While the sector is well established in Kenya with an estimated 730,000 users, it has remained largely unregulated with both the Central Bank of Kenya (CBK) and the Capital Market Authority (CMA) warning their licensees against doing business with players in the sector.
The National Treasury, through the Virtual Asset Service Providers Bill of 2025, targets to regulate the crypto sector and designate the CBK and the CMA as regulators.
According to the proposed law, the CBK would regulate crypto service providers that offer payment and currency-related solutions, while the CMA would regulate companies that offer trading, exchange and initial offerings of virtual assets.
The CBK and the CMA would also have the power to license providers in the industry, approve the issuance of initial virtual asset offerings, supervise promoters of virtual assets, and generally regulate the activities of players in the industry.
The International Monetary Fund (IMF), in a recent disclosure, said that a large number of Kenyan firms are already using cryptocurrencies for payments to foreign suppliers whenever there are dollar shortages or a weakening of the shilling.
A market survey commissioned by the IMF and done by a technical working group comprising officials from the CMA and the CBK, revealed that the typical cryptocurrency user in Kenya is under the age of 40 years and primarily invests in Bitcoin, Ethereum and USDT, which are the top cryptos globally.
