The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have vowed to hunt down operators of Ponzi schemes nationwide.
Following the collapse of the digital asset platform, CBEX, federal government agencies announced this on Wednesday.
However, the SEC confirmed that it has yet to receive formal complaints about the collapsed digital assets site, whilst the EFCC stated that individuals who invested in the CBEX digital trading platform would receive their money back.
During a live television program on Arise TV, SEC Director-General Dr Emomotimi Agama promised to track down the scammers.
CBEX, which claims to employ artificial intelligence for cryptocurrency trading and promises 100% profits in 30 days, crashed on Monday, resulting in an estimated ₦1.3 trillion loss.
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.
The SEC DG went on to say that the Senate recently approved ₦10 billion for the market education project and that with the president’s support, the commission would open more offices around the country to reach out to the people.
He advised Nigerians to report any Ponzi schemes they are aware of to the SEC so that action might be taken.
In response to the development, the EFCC announced that individuals who invested in the CBEX digital trading platform will receive their money back.
The EFCC stated that it was already tracking the CBEX trading platform before the recent public outcry.
According to multiple posts on X, the CBEX, which promised investors a 100% return on investment, began encountering issues last weekend when many investors were unable to withdraw their monies.
On Monday, unhappy ‘investors’ reportedly ransacked the office of Smart Treasure, an offshoot of the CBEX crypto trading platform, in Ibadan’s Oke Ado axis, Oyo State.
Speaking on Channels TV’s Morning Brief on Wednesday, EFCC spokesperson Dele Oyewale stated that the anti-graft agency has received several calls from Nigerians seeking information and solutions regarding CBEX.
He stated that before the recent outrage and concerns, the EFCC had profiled the platform and warned 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 on March 11 this year, the executive chairman of the EFCC, Mr Ola Olukoyede, had called to instruct us to alert Nigerians,” Oyewale said.
The EFCC 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 also 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 a refund, and we are already working on that. All 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.
