The Nigerian Senate has launched an exhaustive investigative process into the operations of Ponzi schemes and unregulated investment platforms in Nigeria, following the collapse of Crypto Bullion Exchange (CBEX), a fraudulent digital scheme that reportedly defrauded over ₦1.3 trillion from unsuspecting Nigerian citizens.
Senator Mukhail Adetokunbo Abiru’s motion highlighted the devastating financial and psychological impact on victims, citing cases of depression, family breakdowns, and even suicide.
The Senate expressed outrage over regulatory lapses that allowed CBEX to thrive unchecked, questioning the timely intervention of agencies like the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), and Economic and Financial Crimes Commission (EFCC).
The joint committee, tasked with investigating the frauds, will conduct zonal public hearings and education campaigns to enlighten Nigerians about the risks of online financial schemes and the importance of regulatory compliance.
Senator Sani Musa emphasized that “some Nigerians have not only lost money but have lost their minds and lives,” describing the situation as “psychological warfare against the people.”
Senator Solomon Adeola warned that Ponzi-style platforms are just one part of a broader wave of unregulated fintech and payment gateway frauds taking root in Nigeria.
The EFCC has launched a global effort to track down those responsible for the CBEX scam, working with INTERPOL to apprehend foreign operators involved in the scheme.
The commission’s spokesperson, Dele Oyewale, assured investors that efforts were being made to recover their lost funds.
The Senate’s probe aims to restore public trust and economic stability, with lawmakers emphasizing the need for robust legislative and institutional reforms to prevent future occurrences.
