By Agboola Aluko Olokun, reporting from Lagos, Nigeria – GLiDE NEWS
I n a joint move to stem the rise of fraudulent investment schemes, Nigeria's Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to crack down on Ponzi scheme operators following the sudden collapse of the digital trading platform, CBEX.
CBEX, which reportedly promised investors a 100% return in 30 days using AI-powered crypto trading, shut down abruptly on Monday, leaving thousands of Nigerians in distress and resulting in an estimated loss of N1.3 trillion.
Speaking during a live broadcast on Arise TV, SEC’s Director-General, Dr. Emomotimi Agama, confirmed the commission had yet to receive formal complaints but vowed action. “If we had received any official petition, our team would have already swung into action. Nonetheless, we sympathize deeply with the victims and will ensure these fraudsters are hunted down,” he stated.
Agama emphasized that Ponzi operations were a global problem dating back to the 20th century but insisted that Nigerians must act within legal frameworks and avoid investments that seem too good to be true. “We have continuously warned Nigerians. The law empowers us to go after these individuals, and we will.”
To improve public awareness, he revealed that the Senate has approved N10 billion for a market education programme, which includes a podcast series and plans for a capital market radio station. He urged the public to verify the registration status of investment platforms via the SEC website or helplines before committing funds.
Meanwhile, the EFCC has assured affected investors of recovery, confirming that CBEX had been under surveillance before its collapse. Speaking on Channels TV, EFCC spokesperson Dele Oyewale said, “Our intelligence team had already profiled the platform. We were not caught off-guard.”
Oyewale added that the anti-graft agency had earlier published a list of 58 suspected Ponzi schemes in March, warning Nigerians to steer clear. “We’re working with Interpol and other global development agencies to track and apprehend those behind CBEX. Investors will recover their money — it may take time, but we’re committed.”
He also criticized the culture of materialism and desperation that often drives victims into the hands of fraudsters. “We cannot just fold our arms. Nigerians must learn to ask tough questions and verify before investing.”
Reports from Oyo State indicate that aggrieved investors stormed and looted a CBEX affiliate office, Smart Treasure, in Ibadan earlier this week. CBEX had begun experiencing withdrawal failures over the weekend before its collapse.
Both the EFCC and SEC reaffirmed their commitment to investor protection and urged the public to report suspicious platforms promptly.
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