A timeline of Crypto ponzi scams targeting African Investors since 2016 till date

Since 2016, Africans have lost billions to exit scams and fraudulent schemes, with Nigeria alone reporting losses exceeding $2 billion. Cryptocurrency adoption across Africa began gaining momentum around the same time, coinciding with global interest after Bitcoin’s surge past $1,000. For many Africans, crypto offered an alternative to unstable currencies, limited banking access, and high remittance fees. Countries like Nigeria, Kenya, and South Africa quickly emerged as hotspots for peer-to-peer trading, with Nigeria often topping global charts for crypto usage by volume (per Chainalysis and others).

However, this rapid growth also attracted fraudulent operations targeting the continent’s emerging crypto community. With limited regulation and a lack of investor awareness, major scams began to surface. The period from 2016 onwards marked a significant increase in crypto-related fraud globally. Africa has been particularly affected, with notorious schemes such as Nigeria’s recent CBEX collapse resulting in losses of ₦1.3 trillion ($1 billion), and South Africa’s AfriCrypt vanishing with $3.8 billion in investor funds.

According to the Nigeria Deposit Insurance Company, Nigerians lost approximately ₦911.45 billion ($2 billion) to various Ponzi schemes over 23 years as of December 2022. The FBI reported $9.3 billion in global crypto fraud losses in 2024 alone, a 66% increase from the previous year.

This roundup covers the major crypto get-rich schemes that have affected Africans since 2016, documenting the methods used, amounts lost, and lessons learned from these incidents.

Crypto-themed scams in Africa so far (2016 – 2025)

Several large-scale crypto Ponzi schemes have targeted or significantly impacted African investors since 2016.  Here’s a comprehensive breakdown in order of recency:

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Crypto Bridge Exchange (CBEX) – 2024 – April 2025

CBEX operated as a sophisticated crypto trading platform promising 100% returns within 30 days through AI-driven strategies. Despite registering with Nigeria’s Corporate Affairs Commission and EFCC’s SCUML for legitimacy, it was never authorised by the Securities and Exchange Commission to operate as a digital asset exchange. The scheme collapsed in April 2025 with estimated losses exceeding ₦1 trillion ($650 million), affecting hundreds of thousands of Nigerians and triggering international investigations involving the FBI and Interpol.

Earlier this month, CBEX operators attempted a “reboot,” asking investors to log back into the platform to claim lost investments. However, they’re demanding $200 activation fees for accounts over $1,000 (and $100 for smaller accounts) before allowing withdrawals—a classic recovery scam tactic designed to extract additional funds from previous victims.

Metaverse Foreign Exchange (MTFE)  – 2022 – 2024

MTFE operated a multilevel marketing scheme that systematically targeted African and Asian investors, moving between countries after draining local markets. Founded by CEO Randy Matthew Lane in 2017, the company reportedly extracted $1 billion from Nigerian investors, particularly in northern regions, before expanding to Sri Lanka (LNR 1 billion stolen) and Bangladesh.

The scheme used mobile apps promising high returns on cryptocurrency and forex investments, initially paying virtual dividends to maintain credibility. MTFE built legitimacy through sponsoring Sri Lanka’s Lanka Premier League cricket tournament. The company collapsed when they shut down their app two weeks before going public, leaving thousands unable to withdraw funds. Many victims had borrowed money to invest, losing everything when MTFE disappeared, with estimated losses in the hundreds of millions across all affected countries.

Chinmark Group (2022)

This entity, headed by Marksman Chinedu Ijiomah, operated under the guise of various businesses, including real estate, agriculture, logistics, and financing, offering returns on investments that were too good to be true, typically between 3.5% and 5% per month. Chinmark gained traction through aggressive social media marketing, showcasing supposed successful projects and leveraging a charismatic frontman. Investors poured in funds, often their life savings or borrowed money. By early 2022, the cracks became apparent as payments faltered, leading to widespread outcry and losses estimated in the billions of Naira. The SEC Nigeria subsequently declared Chinmark Group and its investment schemes illegal.

Bitstream Circle – 2021-2022

Operating around 2021-2022, Bitstream Circle was a Ponzi scheme that primarily targeted investors in Kenya and potentially other East African countries. It promised very high daily returns on investment, often ranging from 5% to 10% daily, through supposed cryptocurrency trading or mining activities. The scheme attracted thousands of members, often through social media platforms like Telegram and WhatsApp, using referral bonuses to fuel its growth. Participants invested various sums, hoping for quick profits. 

As is typical, early investors might have received some payouts, creating an illusion of legitimacy. However, the platform abruptly collapsed, leaving the vast majority of later investors unable to withdraw their funds and suffering significant losses. While exact total figures for Bitstream Circle are harder to consolidate across all affected individuals, Kenyan media reported that schemes like this contributed to the estimated $120 million lost by Kenyans to crypto scams in the 2021/2022 fiscal year, indicating its substantial impact within the region. It exemplified the rapid rise and fall of numerous online “investment opportunities” that preyed on the growing interest in cryptocurrencies.

Africrypt – 2021

This scheme gained international notoriety in 2021. Founded by two young South African brothers, Ameer and Raees Cajee, Africrypt presented itself as an artificial intelligence-driven crypto platform that promised unusually high returns. Investors, including high-net-worth individuals, poured in significant sums of Bitcoin. In April 2021, the platform claimed it was hacked, and all the pooled funds, estimated to be worth around $3.6 billion in Bitcoin at the time of their disappearance, were allegedly stolen. 

The Cajee brothers vanished shortly after, leading to accusations that the “hack” was a cover for a massive rug pull/exit scam. While investigations were launched and some funds were later reported to be partially traceable or recovered in small fractions by different groups, the sheer scale of the initial reported loss sent shockwaves through the South African crypto community and served as a major cautionary tale across the continent about the risks in unregulated crypto investment platforms. The case highlighted the challenges of cross-border crypto asset recovery and the sophistication of such large-scale alleged frauds.

RackSterli – 2020–2021

Founded by Michael Oti, RackSterli operated as a referral-based investment scheme promising to double investors’ money within 24 hours to a few days using USDT and Bitcoin. The platform gained credibility through celebrity endorsements from popular Nigerian musicians and influencers, attracting thousands of investors across multiple investment packages with varying return promises. 

Operating on a typical Ponzi model with daily ROI payouts, RackSterli collapsed in mid-2021 when it could no longer sustain its payout commitments. The Economic and Financial Crimes Commission (EFCC) later officially identified RackSterli as a fraudulent Ponzi scheme that had deceived the Nigerian public.

Crypto Mzanzi – 2020–2021

Crypto Mzansi Group used crypto-themed marketing to promise investors returns of up to 3,000% through social media recruitment in Durban. The scheme operated as a classic Ponzi, paying early investors with new investor funds while the operator traded only for personal profit. After founder Mfundo Manci fled, authorities arrested him in 2022 and recovered R4.5 million (~$250,000) in frozen assets. He received a 10-year prison sentence in March 2025 for fraud and related crimes. However, in October 2024, a High Court ruled that investors were not entitled to refunds, stating they should have recognised that the promised returns were unrealistic.

Mirroring Investment Fraud (MTI) – 2019–2020

MTI operated as a multi-level marketing scheme promising 10% monthly returns through automated cryptocurrency trading bots. Founded by Johann Steynberg, the platform required a minimum $100 Bitcoin deposit and claimed that AI-powered forex trading could deliver 0.5% daily returns (approximately 500% annually).

The scheme attracted over 280,000 investors globally, primarily from South Africa, US, UK, Canada, and Mexico. Chainalysis confirmed MTI as the world’s largest crypto scam of 2020, processing $589 million worth of Bitcoin across 470,000 transactions. When the platform collapsed in December 2020, over 16,000 Bitcoin ($46 million worth) remained unaccounted for.

Steynberg fled South Africa but was arrested in Brazil in December 2021 using fake identification. Investigation revealed MTI falsified trade statements, failed to declare losses, and used a cryptocurrency gambling platform to launder $39 million. The Financial Sector Conduct Authority had issued warnings in August 2020, but the damage was already extensive with hundreds of thousands of victims worldwide.

InksNation (Pinkoin) – 2019-2020

This scheme, emerging around 2019-2020, took a crypto-twist, branding itself as a “humanitarian crypto project” and introducing its own purported cryptocurrency, “Pinkoin.” It promised to eradicate poverty by paying every registered member a lifetime monthly salary, starting from N120,000, upon payment of a sign-up fee.

InksNation claimed to be backed by the “world’s first charitable trust DAO.” However, Pinkoin had no real-world value or utility, and the entire structure was designed to enrich its creators. The Nigerian Financial Intelligence Unit (NFIU) and the Securities and Exchange Commission (SEC) flagged it as an illegal operation, and its founder was eventually arrested, but not before many fell victim to its utopian promises. 

BitConnect – 2017-2018

This infamous platform, which peaked during the 2017 crypto bull run, promised users exceptionally high returns through a “lending program.” Investors were encouraged to buy BitConnect Coin (BCC) and lend it on the platform, with daily interest supposedly generated by a proprietary “trading bot” and “volatility software.” Promoters flaunted lavish lifestyles, fueling the hype. However, BitConnect was a classic ponzi scheme. It collapsed in January 2018 after regulatory action, causing its token value to plummet and leading to investor losses estimated at around $2.4 billion to $3.5 billion. Its founder, Satish Kumbhani, was indicted in the U.S. but remains a fugitive. Glenn Arcaro, a top U.S. promoter, pleaded guilty and was ordered to repay millions in restitution, though this represents only a fraction of the global losses.

OneCoin – 2014-2017

One of the largest and most audacious Ponzi schemes globally, OneCoin was founded by the now-fugitive “Cryptoqueen” Dr. Ruja Ignatova around 2014. Marketed as a revolutionary cryptocurrency that would dwarf Bitcoin, OneCoin was, in reality, a centralised currency with no actual blockchain or verifiable technological backing. It operated through a massive multi-level marketing network, enticing investors with educational packages and the promise of immense wealth as OneCoin’s “value” supposedly skyrocketed.

It is estimated to have defrauded investors worldwide of over $4 billion, with victims spanning continents, including in Africa. Ignatova disappeared in October 2017 and remains on the FBI’s Ten Most Wanted list, with a reward of up to $5 million for information leading to her arrest. Recent reports in 2023-2024 even suggested she may have been murdered, though this remains unconfirmed.

How to spot a Ponzi scheme 

The signs are usually bold, and they often follow a familiar playbook:

• Flashy promises of high returns.
• Referral bonuses that reward recruitment over real value.
• Vague or unverifiable business models.
• Heavy use of crypto buzzwords with little substance.
• Glitchy websites or apps that don’t add up.
• Sudden collapse when authorities step in or new money stops flowing.

Crypto can be empowering but it also comes with risks. Most scams look exciting on the surface and use urgency, hype, and fake credibility to pull people in. Before you invest in any project, ask the hard questions, dig into the details, and trust your gut. Real opportunities don’t need to pressure you or promise the moon. Stay sharp, ask questions, and always do your own research.