"It brings back MMM memory": BBC reports Nigerians' reaction as CBEX allegedly crashes

• CBEX collapsing was heartbreaking for Nigerians who had invested in the digital financial platform, as they lamented on social media
• The BBC has reported Nigerians' reaction and how the scheme brought back the memory of MMM, a popular financial ponzi scheme which crashed in 2016
• MMM, which was founded in November 2015, reportedly had up to three million Nigerian investors before it crashed

Some Nigerians are angry as they return to social media and narrated how they have been locked out of their accounts on CBEX, a digital financial platform.

People have shared the videos of themselves shedding tears and lamenting that they could not withdraw their investment on the platform. They are worried that their money is gone.

CBEX investors looted the Ibadan office

In the southwest city of Ibadan, the Oyo state capital, some furious customers ransacked the office of the financial platform and looted their facility. They carted away chairs, air-conditioners and a solar panel. However, CBEX had yet to make a public comment about the development.

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The BBC reported that CBEX had promised that investors would get double of their investments every month. This came amid Nigeria's economic challenges, and many Nigerians are desperate to boost their income.

Ola, one of the investors who spoke with the BBC Pidgin, expressed the fear that he had lost 450,000 naira ($280; £210). His statement reads:

"I was ready to withdraw all my investment just last week, but my friend told me to be patient and wait - and now it has crashed."

CBEX crashing: Nigerians lament on social media

Many Nigerians have taken to social media to share their stories; one of them talked about losing $16,000 to the ponzi scheme.

The problem with the scheme was first noticed during the weekend, but it escalated on Monday, April 14, when the people were still not able to access their money.

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Some of the investors who laid their complaints on the Telegram channel of CBEX received responses from the digital financial platform.

They were told that the platform was being hacked and that it would soon be resolved.

SEC warned against Ponzi schemes

According to the BBC, the Securities and Exchange Commission (SEC), the federal government agency in Nigeria that regulates the investment sector, was yet to respond to a request for comment. Meanwhile, the SEC had previously warned about the danger of investing in unregulated digital platforms and potential Ponzi schemes.

To some Nigerians, the CBEX situation brought back the painful memories of another popular financial ponzi scheme, known as MMM, which crashed in 2016. MMM froze its transactions in 2016 and left many investors heartbroken.

MMM investors are supposed to receive a 30% return on their investment in just 30 days. It was launched in November 2015, and its founder explained that the scheme had up to three million members before it collapsed.

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Expert speaks on the possibility of investors retrieving their funds from CBEX

SEC cuts approval period to 14 days

Legit.ng reported earlier that the Securities and Exchange Commission (SEC) has slashed the approval time for a company to raise capital in the Nigerian capital market.

This is part of several moves to streamline processes in the capital market, make it more efficient, and position the regulator to support the growth of businesses in the country.

The SEC Director-General, Dr. Emomotimi Agama, disclosed this in a recent statement delivered in Abuja.

Source: Legit.ng