Following the collapse of the digital assets platform CBEX, the Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to pursue and apprehend the operators of Ponzi schemes nationwide. This joint effort aims to recover the estimated N1.3 trillion lost by Nigerian investors.
The collapse of CBEX, which promised investors a 100% return in 30 days using artificial intelligence for crypto trading, has triggered widespread concern and calls for action. Despite the significant losses, the SEC clarified that they had yet to receive formal complaints regarding CBEX at the time of the announcement. However, both agencies have assured the public that investigations are underway.
SEC’s Commitment to Investor Protection
Speaking on Arise TV, Dr. Emomotimi Agama, Director-General of the SEC, expressed deep sympathy for the victims and vowed to take decisive action. “As we speak today at this hour, we have not received any formal complaint from anyone regarding CBEX. 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.”
Agama emphasized the commission’s ongoing efforts to educate Nigerians about the risks of Ponzi schemes. “Ponzi schemes didn’t start today. It’s a global malaise. The SEC will continuously educate people.” He urged investors to verify the legitimacy of investment opportunities by contacting the SEC directly or visiting their website.
To enhance investor education, the Senate has approved N10 billion for market education programs, and the SEC plans to establish more offices across the country. “I will take this opportunity once again to plead with Nigerians who want to invest. Please make sure you make your inquiries,” Agama stated.
EFCC’s Assurance of Fund Recovery
The EFCC has also assured investors that they will recover their lost funds. Dele Oyewale, spokesperson for the EFCC, stated on Channels TV’s Morning Brief that the agency had been tracking CBEX before the public outcry. “We were not waiting for Nigerians to call us before we started our work… We were tracking that digital trading platform.”
Oyewale reminded the public that the EFCC had previously issued warnings about potential Ponzi schemes, listing 58 such companies in March. “That shows that we are proactive and we have our hands on what is happening.”
Addressing the concerns of investors, Oyewale affirmed, “Investors are going to get their money back, and we are already working on that.” He acknowledged that the recovery process might be lengthy but assured that the EFCC is collaborating with Interpol and international agencies to bring the perpetrators to justice. “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.”
Key Takeaways for Investors
- Verify investment opportunities with the SEC.
- Be wary of schemes promising unusually high returns.
- Report suspicious activities to the SEC and EFCC.
- Understand that fund recovery may take time but is being pursued.
The joint commitment of the EFCC and SEC underscores the government’s determination to protect Nigerian investors from fraudulent schemes. As investigations continue, affected individuals are encouraged to come forward with information to aid in the recovery process.
