CBEX: EFCC, SEC Go After Ponzi Schemes

The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have vowed to track down the operators behind Ponzi schemes nationwide, following the collapse of the digital assets platform, CBEX.

In a statement issued on Wednesday, SEC Director-General Dr. Emomotimi Agama assured Nigerians that the commission would hunt down those behind CBEX, which promised 100% returns in 30 days using artificial intelligence for crypto trading.

Naijaonpoint reports that the platform collapsed on Monday, resulting in an estimated N1.3 trillion in losses for its investors.

Agama explained that while the SEC had not yet received formal complaints regarding CBEX, it was already aware of the situation.

He stated, “As we speak today at this hour, we have not received any formal complaint from anyone regarding CBEX because if we had received any formal complaint regarding CBEX, the team at SEC would have swung into action to get who and who is involved.”

However, he emphasized that the SEC would investigate and take action against the operators. “We sympathise very much with the people, the victims, because they are Nigerians. And of course, we will commence investigation as to where the people are and also make sure we hunt them down,” Agama added.

The SEC chief further reminded Nigerians about the dangers of investing in too-good-to-be-true schemes, stressing that Ponzi schemes are not a new phenomenon, citing their origins in the 20th century.

He encouraged Nigerians to make inquiries before investing, using the SEC’s resources such as its website and telephone services to confirm if an entity is registered.

In response to the CBEX debacle, Agama noted that the Senate had recently approved ₦10 billion for the SEC’s market education program, and the commission plans to establish more offices nationwide to reach more Nigerians and offer protection against fraudulent schemes.

Meanwhile, EFCC spokesperson Dele Oyewale confirmed that the anti-graft agency had already been tracking CBEX even before the recent public outcry.

Oyewale revealed that the EFCC had issued alerts in March about potential Ponzi schemes and had been monitoring the platform.

“We were tracking it, and we profiled several things concerning the platform. You will recall that March 11 this year, the executive chairman of the EFCC, Mr. Ola Olukoyede, had called to instruct us to alert Nigerians,” he said.

Regarding the efforts to recover the funds, Oyewale assured investors that their money would be returned, although it might take time.

“Investors are going to get their money back, and we are already working on that. Everything I’m saying is that this kind of thing could have been averted. Be it as it may, it was not averted; we are not going to throw our hands out helplessly and say that there’s nothing the EFCC can do about it,” he stated.

Oyewale mentioned that the EFCC was collaborating with international bodies such as Interpol to bring the perpetrators to justice and recover the stolen funds.

He reiterated that while the recovery might not be immediate, the EFCC was committed to ensuring investors are reimbursed.