IBADAN, Nigeria — The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to pursue operators of Ponzi schemes across Nigeria. This declaration came on Wednesday after the collapse of the digital assets platform, CBEX, which reportedly led to a loss of around N1.3 trillion.
The SEC indicated it had not yet received official complaints related to CBEX but assured investors that the recovery of funds is a priority. On a live broadcast on Arise TV, SEC Director-General Dr. Emomotimi Agama emphasized the commission’s commitment to investigating the matter. “As we speak today, we have not received any formal complaint from anyone regarding CBEX. However, we sympathize with the victims and will commence investigations,” Agama stated.
CBEX, which claimed to leverage artificial intelligence for crypto trading and offered guaranteed 100 percent returns within 30 days, collapsed on Monday. “Ponzi schemes have been around for decades, starting with Charles Ponzi in the 20th century. The SEC has continuously warned people against such schemes,” Agama explained. He urged Nigerians to verify any investment providers through the SEC’s channels, either by phone or through their website.
The SEC has recently secured funding of N10 billion for a market education program to enhance public knowledge about investment risks. Agama also mentioned plans to expand the commission’s office network across the country to improve accessibility for investors.
In response to the crisis, the EFCC stated that it is already tracking the CBEX platform. EFCC spokesperson Dele Oyewale reported that the agency received numerous inquiries from the public seeking guidance following the platform’s downturn, especially as many investors struggled to withdraw funds over the weekend.
“We have been proactive in profiling CBEX even before the recent public outcry,” said Oyewale. Before the crisis, the EFCC listed 58 Ponzi scheme companies to warn Nigerians. “We were tracking CBEX well in advance, highlighting our commitment to protecting investors,” he added.
Oyewale reassured victims that their investments could be recovered, though it might take time. “It would be unprofessional for the EFCC to say that you have lost your money without taking action. We are collaborating with international agencies like Interpol to ensure accountability,” he said.
“The essential thing is that this kind of issue could have been avoided. Now, we are focusing on recovery efforts,” he assured. He concluded by saying that investors should be vigilant and report any suspicious investment schemes to the authorities.
