Senate Probes Surge in Ponzi Schemes After CBEX Collapse Defrauds Nigerians of Over ₦1.3 Trillion.
The Nigerian Senate has launched an investigation into the growing number of Ponzi schemes across the country, triggered by the recent collapse of the Crypto Bullion Exchange (CBEX), which allegedly scammed investors out of more than ₦1.3 trillion.
This move follows a motion raised by Senator Adetokunbo Abiru (Lagos East), who expressed serious concern over the widespread and unregulated operation of fraudulent investment platforms. He cited notorious examples including MMM Nigeria (2016), MBA Forex (2020), and now CBEX, which lured unsuspecting Nigerians with promises of quick and high returns on digital assets.
During the debate, lawmakers warned that the collapse of CBEX had caused not just financial ruin but also deep psychological trauma, pushing some victims into depression, family breakdowns, and even suicide.
The Senate expressed alarm over the failure of relevant regulatory agencies—including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC)—to detect and act on the fraudulent scheme before it spiraled out of control.
As a result, the Senate has directed a joint committee to investigate the proliferation of Ponzi schemes. The committee is expected to conduct a public hearing and present its report within one month.
EFCC Response and Legal Actions
The EFCC, in its defense, claimed it had already raised red flags. Speaking on Channels Television’s The Morning Brief, Dele Oyewale, spokesperson for the Commission, said efforts had been made to warn the public.
“On March 11, our Chairman, Mr. Ola Olukoyede, directed us to alert Nigerians about 58 known Ponzi scheme operators. We published a list—that’s evidence of our proactive stance,” he said.
In further action, on April 25, Justice Emeka Nwite of the Federal High Court in Abuja granted the EFCC’s request to arrest and detain six CBEX promoters over alleged fraud exceeding $1 billion.
The EFCC, through its counsel Fadila Yusuf, had filed an ex parte motion seeking:
Warrants for the arrest of the accused.
Court approval to remand them in EFCC custody pending the conclusion of investigations.
The Commission emphasized that the action was in line with its statutory duty to prevent, detect, and prosecute financial crimes in Nigeria.
The Nigerian Senate has launched an investigation into the growing number of Ponzi schemes across the country, triggered by the recent collapse of the Crypto Bullion Exchange (CBEX), which allegedly scammed investors out of more than ₦1.3 trillion.
This move follows a motion raised by Senator Adetokunbo Abiru (Lagos East), who expressed serious concern over the widespread and unregulated operation of fraudulent investment platforms. He cited notorious examples including MMM Nigeria (2016), MBA Forex (2020), and now CBEX, which lured unsuspecting Nigerians with promises of quick and high returns on digital assets.
During the debate, lawmakers warned that the collapse of CBEX had caused not just financial ruin but also deep psychological trauma, pushing some victims into depression, family breakdowns, and even suicide.
The Senate expressed alarm over the failure of relevant regulatory agencies—including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC)—to detect and act on the fraudulent scheme before it spiraled out of control.
As a result, the Senate has directed a joint committee to investigate the proliferation of Ponzi schemes. The committee is expected to conduct a public hearing and present its report within one month.
EFCC Response and Legal Actions
The EFCC, in its defense, claimed it had already raised red flags. Speaking on Channels Television’s The Morning Brief, Dele Oyewale, spokesperson for the Commission, said efforts had been made to warn the public.
“On March 11, our Chairman, Mr. Ola Olukoyede, directed us to alert Nigerians about 58 known Ponzi scheme operators. We published a list—that’s evidence of our proactive stance,” he said.
In further action, on April 25, Justice Emeka Nwite of the Federal High Court in Abuja granted the EFCC’s request to arrest and detain six CBEX promoters over alleged fraud exceeding $1 billion.
The EFCC, through its counsel Fadila Yusuf, had filed an ex parte motion seeking:
Warrants for the arrest of the accused.
Court approval to remand them in EFCC custody pending the conclusion of investigations.
The Commission emphasized that the action was in line with its statutory duty to prevent, detect, and prosecute financial crimes in Nigeria.
Senate Probes Surge in Ponzi Schemes After CBEX Collapse Defrauds Nigerians of Over ₦1.3 Trillion.
The Nigerian Senate has launched an investigation into the growing number of Ponzi schemes across the country, triggered by the recent collapse of the Crypto Bullion Exchange (CBEX), which allegedly scammed investors out of more than ₦1.3 trillion.
This move follows a motion raised by Senator Adetokunbo Abiru (Lagos East), who expressed serious concern over the widespread and unregulated operation of fraudulent investment platforms. He cited notorious examples including MMM Nigeria (2016), MBA Forex (2020), and now CBEX, which lured unsuspecting Nigerians with promises of quick and high returns on digital assets.
During the debate, lawmakers warned that the collapse of CBEX had caused not just financial ruin but also deep psychological trauma, pushing some victims into depression, family breakdowns, and even suicide.
The Senate expressed alarm over the failure of relevant regulatory agencies—including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC)—to detect and act on the fraudulent scheme before it spiraled out of control.
As a result, the Senate has directed a joint committee to investigate the proliferation of Ponzi schemes. The committee is expected to conduct a public hearing and present its report within one month.
EFCC Response and Legal Actions
The EFCC, in its defense, claimed it had already raised red flags. Speaking on Channels Television’s The Morning Brief, Dele Oyewale, spokesperson for the Commission, said efforts had been made to warn the public.
“On March 11, our Chairman, Mr. Ola Olukoyede, directed us to alert Nigerians about 58 known Ponzi scheme operators. We published a list—that’s evidence of our proactive stance,” he said.
In further action, on April 25, Justice Emeka Nwite of the Federal High Court in Abuja granted the EFCC’s request to arrest and detain six CBEX promoters over alleged fraud exceeding $1 billion.
The EFCC, through its counsel Fadila Yusuf, had filed an ex parte motion seeking:
Warrants for the arrest of the accused.
Court approval to remand them in EFCC custody pending the conclusion of investigations.
The Commission emphasized that the action was in line with its statutory duty to prevent, detect, and prosecute financial crimes in Nigeria.
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