The Economic and Financial Crimes Commission (EFCC) has started a full investigation into the collapse of a digital investment platform called CryptoBank Exchange (CBEX).
The scam is believed to have affected many Nigerians and foreigners, with reported losses of about N1.3 trillion.
The EFCC confirmed that Interpol is now working with them to track the foreign operators of the scheme. According to EFCC spokesman, Dele Oyewale, the commission had already started monitoring CBEX before it suddenly shut down.
“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,” Oyewale said.
CBEX claimed to offer 100% profits within 30 days through crypto trading. But on April 9, 2025, the platform stopped allowing withdrawals and then told users to deposit extra money to access their accounts. Many users were shocked to see that their balances had disappeared.
As of now, thousands of investors are stranded. Some joined the platform even after the issues started, thinking it was a temporary problem.
In response to the growing number of scams, the Securities and Exchange Commission (SEC) recently warned the public about unlicensed online trading platforms. The new Investment and Securities Act 2025 now makes it illegal for any company to operate online trading services without SEC registration.
SEC boss, Dr. Emomotimi Agama, said the new law is “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”
In Ibadan, angry investors stormed the CBEX office, taking office items out of frustration. Police and Amotekun security officers were deployed to restore calm.
In Abuja, the CBEX office in the Jahi area was shut down, and no staff reported to work out of fear.
Victims have continued to share their stories online. One lady said she lost $1,000 meant for her wedding. Another said her brother used his school fees to invest and now cannot face their parents. A businessman revealed that his friends lost $8,000 after he introduced them to the platform.
Despite public sympathy, some government officials blamed the victims. Lere Olayinka, a spokesperson in the FCT, said on social media that people should stop being greedy and avoid get-rich-quick schemes.
The EFCC said they are investigating similar scams and recently listed 58 fake investment companies. Some have been taken to court, while others are still under investigation. These companies lured people with promises of big profits in farming, real estate, and forex trading.
“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,” Oyewale warned.
Experts blame the problem on greed and lack of proper research. A banker, Kelechi Godfrey, said people ignore warning signs and do not check basic facts before investing. He said, “Google is your friend, and ChatGPT is there, how many minutes would it take to search for information on something that they want to invest in?
“We are talking about $800m worth of investment going down the drain. This amount of money put into the economy can impact positively on the economy and it’s lost to a Ponzi scheme that ran for how many days. Always do your due diligence, when you see returns that are not normal, that is too good to be true, just know that there is something fishy going on there. I also heard that they were forcing them to register people. A system that works well will not need you to bring in people. There is a lot we need to do.”
Investment banker Segun Aremu added, “I have discovered that our investors are oriented in such a way that they want big returns but not big risks. When it comes to this type of scheme, the number one reason is greed. Everyone who has become a victim of the Ponzi scheme is greedy. You may say that the economy is tough and people are trying to beat inflation but the truth is, there are verifiable investment products in the market for people. We keep saying these things but people turn a deaf ear. People are bullish without fundamentals.”
Authorities say the investigation is ongoing, and recovery of stolen funds will be attempted. The EFCC encourages all victims to come forward and report their cases.
