By Orkula Shaagee, with agency reports
From digital platforms to other the-more-you-look-the-you-see schemes hopes of a quick return on investment run high, and then crash painfully, the latest being the platform, CryptoBank Exchange, CBEX.
As the Interpol and the Economic and Financial Crimes Commission, EFCC , launch investigation into the alleged N1.3tn worth of alleged fraud perpetrated by CBEX, Nigerians have taken to various social media platforms to lament their losses.
CBEX, operating without legal approval from the Nigeria Securities Commission, crashed on Monday and the money in their investors’ wallets simply vanished. The digital platform also locked its Telegram channels and postponed withdrawals while offering investors the option of $2,000 for $200 verification and $1,000 for $100 verification.
Following reports of the crash, the Economic and Financial Crimes Commission has launched a fraud investigation. EFCC spokesman, Dele Oyewale, said that the commission would collaborate with the International Criminal Police Organisation to investigate the incident.
Oyewale stated that the agency had already begun investigating CBEX even before its collapse, adding that efforts were underway to arrest both the local and international operators behind the fraudulent scheme.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in.
We will ensure that we save Nigerians from all these troubles associated with Ponzi schemes. Don’t forget that we already issued an advisory — the 58 companies we alerted the public about. There are many more we are currently investigating.
He also revealed that the commission was working to uncover other Ponzi schemes operating across the country.
“We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure that Nigerians are protected from this kind of scheme. We will do our job—where recovery is possible, we will recover; where prosecution is possible, we will prosecute.
“Overall, we will do our best. Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on to the local collaborators while we are partnering INTERPOL to trace the foreign operators,” he added.
Reports put the volume of stolen investors’ funds at $847m, which may likely increase, but Techpoint Africa estimates that only $6.1 million was deposited into the account. The investment platform claims to offer 100 per cent returns within 30 days via online trading, but suddenly restricted withdrawals on April 9, 2025.
Oyewale, appearing as a guest on Channels Television’s The Morning Brief yesterday, assured that the commission is working with its international partners, including Interpol, to track the culprits and ensure that the victims get their money back.
“It would be very irresponsible and unprofessional of the EFCC to say you have lost your money and there is nothing the commission can do about it; we’re already working with Interpol and we’re already working with our international development agencies to ensure that these people are brought to book.
“Investors are going to get their money back and we’re already working on that. All I’m saying is that this kind of thing could have been averted, but we’re not going to throw our hands up helplessly to say that there’s nothing the EFCC can do about it. No, we’re more responsible, we are more professional than that.
“So, we’ve spread our wings; we’re talking to Interpol, we’re talking to all the necessary agencies across the world to be able to bring all the actors to book and the investors are going to have their money back. It might not be in the short term, but I can assure you that the commission, as the leading anti-corruption agency in Nigeria, is not going to allow investors to just lose their money like that because they are not compliant. No. Escapism is not a solution to any problem,” he said.
Oyewale reminded Nigerians that “on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list – that shows that we’re proactive and we have our hands on what is happening.
“So, concerning this CBEX thing, we’re on it; it’s not that we didn’t know, and you know we’ve been alerting Nigerians about ways and means to separate themselves from this type of shenanigans. So, before the calls came, we were working; while the calls were coming, we were working, and even after the calls, we’re still working.
“We cannot lay any blame on the EFCC concerning this CBEX thing. I’m sure we know that that business venture is a Chinese digital trading company with no jurisdictional link with Nigeria; all the area offices that people are saying are in Ibadan and in some other locations are not functional offices. The entire thing is online.
“And we have been warning Nigerians against criminal engagements online. So, what would you expect the EFCC to do? We have given empowerment, given enlightenment, given public awareness, and raised intelligence. It is to the credit of the EFCC chairman that he came forward to say that there are 58 companies that Nigerians are patronising that they should no longer patronise.
“So, if the commission is as proactive as that, then the rest is for the people concerned to be more vigilant and to ensure that they guard their investment in line with the information that is available.”
He further explained that the Investment and Security Act 2025 is a very important, well-conceived and responsive Act of the government to check illegal investment schemes. According to him, with the Act, it is criminal to engage in any digital trading activity without being licensed, without complying with all the extant laws, as any form of exchange or business engagement must conform with the Act.
Oyewale said, “We know that for every business concern, you declare your profit either quarterly, annually or bi-annually, but if somebody says, ‘Bring your money; I’m going to give you a return in 30 days, you know that is not realistic; it’s just not pragmatic. Or if somebody says if you bring your money, we’re going to give you a 100% return on investment, that is not possible; even we know that the prevailing interest rate in Nigeria is 27.5. So, how will somebody give you a 100% return on investment in 30 days?
“So, if you want to go into any investment, you must look at these fellows that are parading this: how compliant are they with the Money Laundering Prevention and Prohibition Act 2022? How compliant are they with the Proceeds of Crime Act? How compliant are they with the Terrorism Financing Act? It is very important. Now, if they’re operating at variance with all of these laws, you know that it’s just a matter of time before a problem will come,” he said.
The Securities and Exchange Commission, SEC, in response to the CBEX crash pointed out that in accordance with the ISA 2025 recently signed by President Bola Tinubu, it is an offense for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.
“By virtue of this act, it is an offense in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.
“Any business entity planning to set up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions,” it added.
The development has sparked condemnations from Nigerians on X.
A user on X, Steve Fred, wrote yesterday: “Are we not just fantastically stupid in Nigeria?
“Nigerians are as gullible as their leaders. How many times will they be scammed before they have sense?
“How can a company like ‘CBEX’ just appear from thin air and promise you 100 percent ROI in 1 month, and you begin to invest?”
Another user, known on X as Oku, reacting to the CBEX crash, said: “The smaller the profit, the more I TRUST YOU.
“You have no business doing a business that promises you 50 percent to 100 percent ROI.”
The development comes after the SEC recently warned Nigerians to stay clear of unregistered trading platforms.