The Federal Government has declared a renewed war against Ponzi schemes in Nigeria, with the Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) pledging to clamp down on fraudulent investment platforms operating across the country. This move follows the collapse of CBEX, a digital asset trading platform that lured unsuspecting investors with promises of 100 per cent returns in 30 days.
In a joint response to the growing concerns from the public, both agencies on Wednesday reaffirmed their commitment to safeguarding Nigerians from financial exploitation. While the SEC disclosed that it had not yet received formal complaints about CBEX, it assured that investigations would commence immediately. The EFCC, on its part, confirmed it had been monitoring the platform prior to the recent public uproar and gave assurances that investors would eventually recover their funds.
Speaking during a live broadcast on Arise TV, the Director-General of the SEC, Dr. Emomotimi Agama, expressed strong disapproval of fraudulent schemes and vowed that those behind CBEX would be tracked down and prosecuted.
“As we speak, we have not received any formal petition regarding CBEX. But that does not mean we will fold our arms. We sympathise with the victims and have already begun taking steps to investigate the operators and bring them to justice. These individuals will be hunted down, and the law will take its course,” Agama stated.
CBEX, which claimed to leverage artificial intelligence for cryptocurrency trading, reportedly shut down operations on Monday, with investor losses estimated at over N1.3 trillion. According to reports, trouble began over the weekend when users encountered difficulties withdrawing their funds, sparking panic and public outrage.
Agama, while referencing the history of Ponzi operations, described such schemes as a global affliction that dates back to the early 20th century. He urged Nigerians to always verify the legitimacy of any investment offer, no matter how attractive the returns may appear.
“Ponzi schemes are not new. They thrive on greed and ignorance. We’ve been educating the public and have launched initiatives, including a podcast and plans for a capital market radio station, all designed to inform investors and protect them from fraudsters,” he added.
He revealed that the National Assembly had recently approved N10 billion for a nationwide capital market education programme. With the support of President Bola Tinubu, the SEC is working towards establishing more offices across the country to provide timely guidance to the investing public.
Also speaking on the matter, EFCC spokesperson, Dele Oyewale, appearing on Channels TV’s Morning Brief, confirmed that the commission had been on the trail of CBEX before the current crisis unfolded. He disclosed that Smart Treasure, one of CBEX’s known physical arms located in Ibadan, was stormed by aggrieved investors on Monday.
“We were tracking the platform and had profiled it even before public complaints began flooding in. The EFCC had already warned Nigerians about the dangers of these Ponzi schemes. On March 11, our chairman, Mr. Ola Olukoyede, published a list of 58 suspicious investment platforms to alert the public,” Oyewale said.
He reiterated that EFCC’s intelligence systems had flagged CBEX long ago and assured Nigerians that the commission is working with international partners, including Interpol, to bring the masterminds to justice.
“It would be completely unprofessional to tell Nigerians that their money is gone and nothing can be done. That is not who we are. We are in touch with Interpol and other international development agencies. We are going after the perpetrators, and the investors will recover their funds. It may take time, but we are committed to it,” Oyewale stated.
He further noted that the EFCC’s dragnet remains wide and that the commission is continuously monitoring suspicious platforms. He urged the public to remain vigilant and report any dubious investment offers promptly.
As public concern over financial scams continues to rise, the renewed partnership between the EFCC and SEC is being viewed as a significant step toward restoring investor confidence and curbing the activities of fraudsters exploiting digital and unregulated platforms in the country.
