By Abbanobi -Eku Onyekachi
Abuja
The Nigerian Senate has mandated a joint committee to conduct an investigative hearing into the operations of Ponzi schemes in Nigeria, with a focus on the recent Crypto Bullion Exchange (CBEX) incident. The probe aims to uncover the lapses that allowed CBEX and similar platforms to thrive unchecked, defrauding millions of Nigerians of over ₦1.3 trillion.
This latest development was sponsored by Sen. Abiru, Mukhail Adetokunbo (Lagos East) Sen. Izunaso, Osita Bonaventure (Imo West) at the plenary today, Wednesday if the Senate.
CBEX, a digital investment platform, promised investors outrageous returns before suddenly collapsing, leaving many with severe financial hardship. The scheme’s promoters allegedly used deceitful tactics, including referral commissions, celebrity endorsements, and fake testimonials, to convince over 600,000 Nigerians to invest.
The Senate is concerned that despite CBEX’s scale and visibility, it operated for an extended period without facing sanctions from regulatory agencies, including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), or Economic and Financial Crimes Commission (EFCC).
The investigative hearing aims to determine the failures of regulatory agencies in monitoring and preventing the CBEX fraud recommend necessary legislative or administrative reforms to forestall future occurrences, and develop robust mechanisms for monitoring, prevention, and prosecution to safeguard Nigerian citizens, especially vulnerable groups.
However, the Senate expects the probe to provide insights into the operations of Ponzi schemes and inform policy decisions to regulate the industry and protect citizens. The committee is expected to report back in four weeks, providing recommendations to prevent future occurrences of such schemes.
