The Economic and Financial Crimes Commission (EFCC) has launched a full-scale investigation into the collapse of CryptoBank Exchange (CBEX), a digital investment platform accused of defrauding investors of up to ₦1.3 trillion (approximately $847 million).
The platform, operated by a network of foreign nationals and Nigerian collaborators, reportedly crashed on Monday, locking thousands of users out of their accounts and demanding fresh deposits before access could be restored.
Confirming the investigation, EFCC spokesperson Dele Oyewale said the commission had already been monitoring CBEX before its collapse.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in.
“We will ensure that we save Nigerians from all these troubles associated with Ponzi schemes. Don’t forget that we already issued an advisory — the 58 companies we alerted the public about. There are many more we are currently investigating,” The PUNCH reports.
He added that the EFCC is partnering with INTERPOL to track down the foreign elements of the scheme.
“We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure that Nigerians are protected from this kind of scheme. We will do our job—where recovery is possible, we will recover; where prosecution is possible, we will prosecute,” Oyewale said.
“Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on the local collaborators while we are partnering with INTERPOL to trace the foreign operators.”
Platform collapse sparks outrage
Cbex, a digital trading asset platform that promised investors a 100 per cent 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.
Following the collapse, aggrieved investors in cities like Ibadan and Abuja stormed CBEX offices. In Oke Ado, Ibadan, angry users looted furniture and equipment. Security agents, including the police and Amotekun, were deployed to prevent further violence.
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.
“Under 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.
Personal losses mount
Victims across Nigeria are beginning to share their stories. One investor, speaking anonymously, said:
“I invested over $10,000 in the scheme. It has been a tough time for me. I was introduced by a friend and was convinced after I was shown evidence of the amount she made.”
Another investor said he introduced three friends who lost a combined $8,000:
“I feel bad that the people I introduced to the scheme might have lost their investment. I don’t know how to broach the issue with them.”
Instagram user #the_real_aduke posted:
“I lost $1,000. That was my bridal savings. I don’t even know how to tell my fiancé. I feel numb.”
Chinenye Nduka shared on Facebook:
“My brother invested his school fees and now he can’t even face my parents. God, this country keeps dealing with us.”
Government reacts
The SEC has recently warned Nigerians against unregistered trading platforms, stating that under the Investment and Securities Act 2025, operating online forex or digital investment services without registration is now a criminal offence.
Dr. Emomotimi Agama, SEC’s Director-General, said:
“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence… 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.”
Lere Olayinka, spokesperson to the Minister of the Federal Capital Territory, weighed in but drew criticism after appearing to blame victims.
“As for victims of CBEX, police and EFCC should be on the lookout. I don’t have sympathy for greed and foolishness,” he posted on X.
In March, the EFCC released a list of 58 fraudulent companies, some of which have already been prosecuted or are awaiting trial. The commission said these companies lured investors with promises of unrealistic profits from ventures in agriculture, real estate, and forex.
“They operated without proper licenses, deceiving the public with false investment opportunities. Many investors suffered heavy financial losses after these companies disappeared with their money. The EFCC has intensified efforts to recover stolen funds from these fraudulent companies,” the anti-graft agency stated.
Oyewale urged Nigerians to exercise caution before committing funds to any financial entity not duly registered with regulatory bodies.
“We urge the public to verify any investment opportunity with the CBN and SEC before engaging. The EFCC remains committed to safeguarding the public from predatory operators and ensuring a corruption-free economic environment,” he said.
He also encouraged victims to come forward with complaints and assured them that recovery efforts were ongoing.
