Following the fall of MMM in December 2016 after it was introduced in Nigeria in 2015, among other Ponzi schemes, Nigerians have again fallen for another allegedly fraudulent scheme known as Cbex, a digital trading asset platform.
Cbex, a digital trading asset platform that promised investors a 100 percent return on investment in 30 days with a structure similar to that of MMM, has left many Nigerians in shock, as users were restricted from accessing their wallets and making withdrawals on Monday.
Cbex, which aimed to create a secure, transparent environment for transactions, has reportedly eloped with over N1.3 trillion from various investors’ accounts.
New Daily Prime learned that the Telegram channels have been locked, with postponed withdrawal notifications, as investors were given a lifeline of $2,000 for $200 verification and $1,000 for $100 verification.
The Securities and Exchange Commission (SEC) described Cbex as a Ponzi scheme.
Meanwhile, recall that the Investment and Securities Act (ISA) 2025, signed recently by President Bola Tinubu, highlights that penalties await any entity operating as an online forex trading platform without registration with the Commission.
“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the Commission to carry out the business of online foreign exchange trading platforms or related services.
“Any business entity with the plan of setting up a business in any of these areas is advised to visit the HOD DRM Department of the Commission for further direction on how to register with the Commission to avoid sanctions,” it added.
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The SEC, while warning Ponzi scheme patrons, underscored that under the newly enacted legislation, the Securities and Exchange Commission (SEC) is now empowered to regulate a broader scope of market activities, as Section 3(3)(b) of the Act explicitly mandates the Commission to register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.
Meanwhile, Dr. Emomotimi Agama, the Director General of the Commission, reemphasized the commitment of the SEC, highlighting it as a key step to position Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.
He stated, “The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms.”
Netizens React
The recent development has sparked mixed reactions among netizens as they took to various social platforms, lamenting the collapsed scheme, while others recalled Nigeria’s history with multiple scams, urging people to learn and avoid being victims of fraudsters in the future.
While listing other Ponzi schemes, Prestigious, an X user, recalled Nigerians’ involvement in previous scams. The X user said, “Nigerians never Learn. This is the list of Ponzi schemes that have made away with Nigerians hard-earned money yet they still fall mugu… How many of them duped you?.”
Oraro, another user, noted, “Omg! Always Do Your Own Research(DYOR) Before investing in anything like this. Sadly it’s mostly those newbies who always fall victims.”
Kieran Ironclad, another netizen, reacted, “Losing money to CBex after all other Ponzi schemes of the past is just a microcosm of the greed of Nigerians. Always looking for the easiest way out.”
Flying Scholar noted, “Hian ! People are always quiet when they’re benefiting from these schemes, but the moment they lose their money, the news spreads like wildfire. I really hope Nigerians learn from this one. Just imagine the huge sums of money stolen from Nigerians—it’s just too sad.”
