Ponzi Scheme

ABUJA – The Economic and Financial Crimes Commission and the Securities and Exchange Commission have vowed to hunt down operators of Ponzi schemes nationwide.

The Federal Government agencies declared this on Wednesday following the collapse of the digital assets platform, CBEX.

The SEC, however, revealed that it had yet to receive formal complaints about the collapsed digital assets platform, while the EFCC said individuals who invested in the CBEX digital trading platform would get their money back.

Speaking during a live television programme on Arise TV, the Director-General of SEC, Dr Emomotimi Agama, vowed that the commission would hunt down the fraudsters.

CBEX, which claims to use artificial intelligence for trading in crypto and promised 100 per cent returns in 30 days, collapsed on Monday, with an estimated N1.3tn lost.

Speaking on the show, Agama said, “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, 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 because the law has given us the power to take them down.”

He maintained that the SEC had continuously warned Nigerians against investing in schemes that are too good to be true.

“Ponzi schemes didn’t start today. It’s a global malaise. It started in the 20th century with a man called Charles Ponzi, who then promised that he was going to be able to give every investor 50 per cent in returns. From then on, it became a practice for so many people to defraud others of their hard-earned resources.

“But the choices made by people must be dictated and regulated by the law of the land. The SEC will continuously educate people. We have, in the process of doing that, agreed to various forms of interviews. We’ve also launched a podcast at the SEC, providing more information towards our long-term goal of launching a capital market radio.

“I will take this opportunity once again to plead with Nigerians who want to invest. Please make sure you make your inquiries. You can ask the SEC by telephone, or by going to our website to make inquiries as to whether these persons or individuals are registered by the SEC, or whichever one you are aware that is not registered, please we ask that you inform the SEC in good time,” he said.

The SEC DG went on to reveal that the Senate recently approved the sum of N10bn for the market education programme and that with the support of the President, the commission would establish more offices across the country to get closer to the people.

He encouraged Nigerians to report Ponzi schemes that they know to the SEC for it to take action.

Also reacting to the development, the EFCC said individuals who invested in the CBEX digital trading platform would get their money back.

EFCC said it was already tracking the CBEX trading platform before the recent public outcry.

According to several posts on X, the CBEX, which promised investors a 100 per cent return on investment, began experiencing trouble last weekend as many could no longer withdraw their funds.

On Monday, aggrieved ‘investors’ had reportedly looted the office of Smart Treasure, an arm of the CBEX crypto trading platform, in the Oke Ado axis of Ibadan, Oyo State.

Speaking on Channels TV’s Morning Brief on Wednesday, the spokesperson for the EFCC, Dele Oyewale, said the anti-graft agency has been receiving numerous calls from Nigerians seeking information and remedies regarding CBEX.

He said before the recent outcry and calls, EFCC had profiled the platform and alerted Nigerians about potential Ponzi schemes.

“We were not waiting for Nigerians to call us before we started our work. Of course, we have been working. We were not beaten by what actually happened. Our dragnet is wide, our intelligence is very effective, and we were tracking that digital trading 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,” Oyewale said.

The spokesperson recalled that about 58 Ponzi scheme companies were listed by the commission in March for Nigerians to be wary of.

“That shows that we are proactive and we have our hands on what is happening. So concerning this investigation, we were on it; it’s not that we didn’t know. We’ve been alerting Nigerians about ways and means of how to separate themselves from this kind of shenanigans.

“Before the calls came, we were working, while the calls are coming, we are working; And even after the calls, we are still working. The essential thing is that, of course, we are going to recall some of the things that Nigerians should be looking out for, you know, concerning this kind of investment schemes and all of that,” he said.

Oyewale further assured investors that their money will be recovered, though it may take time.

“No, it will be very irresponsible and unprofessional if the EFCC says that you have lost your money; there is nothing the commission can do about it. We are already working with Interpol and our international development agencies to ensure that these people are brought to book.

“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 EFCC can do about it.

“We are more responsible and professional than that. We have spread out our wings by talking to Interpol and the necessary agencies across the world to be able to bring all the actors to book, and investors will have their money back,” the spokesperson said.

Oyewale said the investments might not be recovered in the short term, but the EFCC will not allow investors to lose their money.