CBEX Collapse: EFCC and SEC declare war on Ponzi Scheme Operators

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The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to crack down on operators of Ponzi schemes nationwide. This declaration comes after the collapse of the digital assets platform, CBEX, which promised 100% returns in 30 days and claimed to use artificial intelligence for trading in crypto.

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The EFCC spokesperson, Dele Oyewale, assured that investors who put their money in the CBEX digital trading platform would get their money back. “Investors are going to get their money back, and we are already working on that,” Oyewale said. The EFCC had profiled the platform and alerted Nigerians about potential Ponzi schemes before the recent public outcry. Oyewale said, “We were tracking it, and we profiled several things concerning the platform.”

Oyewale further explained that the EFCC had been proactive in identifying potential Ponzi schemes, recalling that about 58 such companies were listed by the commission in March for Nigerians to be wary of. “That shows that we are proactive and we have our hands on what is happening,” he said.

The SEC Director-General, Dr. Emomotimi Agama, warned Nigerians against investing in schemes that are too good to be true. “Ponzi schemes didn’t start today. It’s a global malaise,” Agama said. He encouraged Nigerians to report Ponzi schemes to the SEC for action. “Please make sure you make your inquiries. You can ask the SEC by telephone or by going to our website,” he advised.

Agama also revealed that the Senate recently approved N10 billion for the market education programme, which aims to educate Nigerians on investment opportunities and risks. He emphasized the SEC’s commitment to educating the public and launching a capital market radio to provide more information.

The collapse of CBEX has resulted in an estimated loss of N1.3 trillion. Aggrieved investors reportedly looted the office of Smart Treasure, an arm of the CBEX crypto trading platform, in Ibadan, Oyo State. The EFCC is working with Interpol and international development agencies to bring the perpetrators to book. “We have spread out our wings by talking to Interpol and the necessary agencies across the world,” Oyewale added.

Oyewale assured investors that their money would be recovered, though it may take time. “No, it will be very irresponsible and unprofessional if the EFCC says that you have lost your money; there is nothing the commission can do about it,” he said.

The EFCC and SEC’s joint effort to crack down on Ponzi schemes aims to protect Nigerian investors and promote a safer investment environment

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