We Warned Nigerians - EFCC Speaks on Crashed Ponzi Scheme CBEX
- The EFCC has reiterated that it warned Nigerians in advance about Ponzi schemes before the alleged ₦1.3 trillion CryptoBank Exchange (CBEX) collapse
- CBEX, a Chinese-run digital platform with no physical presence in Nigeria, reportedly defrauded thousands by promising unrealistic returns
- EFCC says it had published a list of fraudulent platforms in March 2024 and advised the public to verify investment compliance with existing laws
The Economic and Financial Crimes Commission (EFCC) has restated its warnings to Nigerians against falling for high-yield investment schemes, following widespread anger over the collapse of digital trading platform CryptoBank Exchange (CBEX), which is at the centre of an alleged ₦1.3 trillion fraud.
Appearing on Channels Television’s The Morning Brief on Wednesday, EFCC spokesperson Dele Oyewale said the Commission had repeatedly cautioned the public before the CBEX incident, citing efforts to alert Nigerians to the dangers of Ponzi schemes.
Source: Facebook
According to Oyewale:
“In March 2024, the EFCC Chairman, Mr. Ola Olukoyede, directed us to publish a list of 58 Ponzi scheme operators to warn the public. That shows we’ve been proactive.”
He noted that CBEX had been on the Commission’s radar prior to the public fallout, describing the platform as deceptive and lacking any verified operational base in Nigeria.
CBEX had no real offices anywhere
Oyewale explained that contrary to claims by the company’s promoters, CBEX had no legitimate office in cities like Ibadan or Lagos.
“We had already been monitoring CBEX, and we’ve continuously advised Nigerians to stay away from such deceptive platforms,” he said.
Source: UGC
While defending the agency’s response, he stressed that the EFCC had taken significant steps to inform the public.
“We’ve empowered, enlightened, and informed the public. Nigerians must take responsibility for safeguarding their investments by verifying compliance with relevant laws,” Oyewale added.
He further called attention to the newly enacted Investment and Securities Act 2025, which now criminalises operations by unlicensed digital trading platforms.
Oyewale warned that investment schemes promising extraordinary returns within short timeframes are often fraudulent.
“Any business promising 100% returns in 30 days is unrealistic. With Nigeria’s interest rate at 27.5%, such offers are clear red flags,” he said.
The EFCC spokesperson also urged Nigerians to vet any financial investment scheme against existing legislation, including the Money Laundering (Prevention and Prohibition) Act, the Proceeds of Crime Act, and the Terrorism Financing Act.
He maintained that platforms operating outside these laws were bound to collapse eventually.
“If these platforms are operating outside the bounds of these laws, it’s only a matter of time before things fall apart,” he concluded.
The Commission has assured the public that investigations into the CBEX case are ongoing, with international law enforcement agencies now involved in efforts to trace and apprehend key figures behind the alleged scam.
Web3 analyst shares view on CBEX licensing concerns
A Web3 analyst, identified simply as Specter, in a chat with Legit.ng weighed in on the CBEX controversy, following claims that the crypto platform lacked proper regulatory approval.
Acknowledging concerns, he said,
“They didn’t have SEC approval, but that’s not an issue. They registered CAC, did SCUML. Many already believed in that.”
Asked what early signs investors should watch for to avoid such platforms, Specter replied,
“I plan to make a post about that, maybe when I do, you will see it.”
3 popular Ponzi Schemes that duped Nigerians
Legit.ng recently reported that CBEX, a digital investment platform, which promised 100% returns to investors within a 30-day time frame, has reportedly crashed, trapping N1.3 trillion of people's funds and leaving many Nigerians shattered.
CBEX joins an infamous growing list of Ponzi schemes that have all operated using the same modus operandi of offering mouth-watering payouts, paying out at their initial stages before ending in calamitous losses.
Editorial assistant Ololade Olatimehin provided exclusive commentary from a Web3 analyst for this report.
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Source: Legit.ng
