Following widespread complaints from Nigerians who lost money through the digital asset trading platform CBEX, the Economic and Financial Crimes Commission (EFCC) has launched a full investigation into the suspected Ponzi scheme.
The EFCC confirmed to BBC News Pidgin that it is working closely with the International Criminal Police Organisation (Interpol), the Federal Bureau of Investigation (FBI), and other global agencies to identify those behind the CBEX operation and explore ways to recover stolen funds.
This development comes after investors reported being unable to withdraw their funds for several days due to suspended withdrawals. Shortly after, the platform suddenly crashed, resulting in massive losses.
Reports indicate that over ₦1.3 trillion was siphoned from investors’ accounts by the fraudulent platform, which had promised an unrealistic 100% return on investment in just 30 days—a major red flag.
“We are working with Interpol, the FBI, and other international agencies because of the cross-border nature of this case,” said Dele Oyewale, EFCC Head of Media and Publicity. “The goal is to uncover the full extent of the fraud and do everything possible to recover some of the lost funds.”
Oyewale also revealed that the agency had been monitoring the CBEX platform even before it collapsed. He stressed that the EFCC will continue its efforts to hold the perpetrators accountable.
“As an anti-corruption agency, we cannot remain silent. We’ve been investigating before the platform crashed, and we’ll continue the work until justice is served.”
CBEX operated as a digital asset trading platform and lured unsuspecting investors with promises of quick and massive profits. Unfortunately, it followed the all-too-familiar pattern of Ponzi schemes that have repeatedly defrauded Nigerians.
Despite repeated warnings from the Securities and Exchange Commission (SEC) about unregistered investment platforms, many people still fall prey to such scams.
Why Do Nigerians Still Fall for Ponzi Schemes?
The alarming rise in Ponzi schemes in Nigeria has left many wondering why people continue to fall for such traps—especially after high-profile scams like MMM, which cost Nigerians an estimated ₦12 billion in 2016.
Financial experts believe the economic hardship in the country plays a major role. With inflation rising and job opportunities limited, many are desperately seeking quick ways to improve their financial situation.
“Nigerians are drawn to Ponzi schemes because of the promise of high returns in a short time,” said Caleb Ijioma, Executive Director of Roundcheck, a fact-checking and financial literacy organization. “It appeals to their desire for financial freedom.”
He added that these schemes often exploit people’s greed and vulnerabilities, convincing them to invest and then persuading others to do the same, creating a false sense of legitimacy.
“Unlike legitimate investments, Ponzi schemes offer benefits that seem too good to be true—and unfortunately, many Nigerians still chase those promises, ignoring the warning signs.”
Until there is broader financial education, stricter regulatory enforcement, and stronger economic stability, experts fear more Nigerians may continue falling victim to these schemes.
