The Nigerian Senate has opened a major investigation into Ponzi schemes after the shocking collapse of the Crypto Bullion Exchange, also known as CBEX. The Senate probes Ponzi schemes after ₦1.3 trillion CBEX scam shook the nation, raising fresh fears about unchecked investment fraud in Nigeria.
The Senate probe into Ponzi schemes after ₦1.3 trillion CBEX scam comes following a motion presented by Senator Adetokunbo Abiru, representing Lagos East. He expressed serious concern over the spread of fraudulent investment platforms promising massive profits.
Senator Abiru highlighted how past scams like MMM Nigeria in 2016 and MBA Forex in 2020 ruined lives. However, he noted that the CBEX case has reached a new, frightening level, with millions of Nigerians losing over ₦1.3 trillion.
The Senate expressed dismay that CBEX operated for months, despite its large online presence. They slammed regulatory bodies such as the Securities and Exchange Commission, the Central Bank of Nigeria, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission for failing to intervene on time.
A joint committee has been set up to conduct a public hearing. They are expected to release their findings within one month.
EFCC Moves Against CBEX Promoters Over ₦1.3 Trillion Fraud
The Economic and Financial Crimes Commission is also acting. The EFCC had warned Nigerians several times this year about Ponzi schemes, including CBEX.
The spokesperson of the EFCC, Dele Oyewale, reminded Nigerians that the commission had already raised alarms. He said during an interview on Channels Television that the agency had released a list of 58 suspicious companies.
According to him, “You will recall that on March 11 this year, the Executive Chairman of the EFCC, Mr Ola Olukoyede, instructed us to alert Nigerians about 58 Ponzi scheme companies. We came out with a list—that shows that we are proactive and we have our hands on what is happening.”
The EFCC had earlier secured a court order against CBEX promoters. On April 25, Justice Emeka Nwite of the Federal High Court in Abuja granted permission for their arrest and detention over alleged fraud of over $1 billion.
The EFCC’s counsel, Fadila Yusuf, filed the motion. She asked the court to allow the agency to hold the suspects during their investigation.
The EFCC listed four reasons for their application. They stressed that they must prevent and detect financial crimes as part of their legal duty. They also argued that keeping the suspects in custody was necessary to stop interference with the investigation.
Senate Probes Ponzi Schemes After ₦1.3 Trillion CBEX Scam Amid EFCC Crackdown
In the same television appearance, Dele Oyewale said the EFCC had done its part by warning people. He stressed that their March list of risky companies showed their commitment to protecting Nigerians from scams.
Meanwhile, the EFCC remains focused on CBEX. The court granted them permission to detain the six promoters accused of running the platform. The case involves charges of defrauding investors of more than $1 billion.
In court, the EFCC explained that the promoters needed to be detained while investigations continue. Their counsel emphasized that this was necessary to protect victims and secure justice.
According to them, the detention is a legal step to ensure that the case is fully investigated without outside influence.
Bottom Line
As the Senate probes Ponzi schemes after ₦1.3 trillion CBEX scam, many Nigerians are left wondering how such a massive fraud could thrive in plain sight.
Questions about the role of regulatory bodies remain unanswered. People are asking why CBEX was allowed to advertise so openly and operate for so long without serious checks.
This is not just about recovering stolen funds. It is about the lives shattered, the homes broken, and the trust betrayed. The damage from this scandal has gone beyond money. It has scarred families, crushed dreams, and driven some victims into dark places.
