The Nigerian Senate has ordered a comprehensive investigative public hearing on the Crypto Bullion Exchange (CBEX) scam, that left many Nigerians devastated, losing over N1.3 trillion.
The resolution was reached on Wednesday at the Senate plenary session, following the motion sponsored by the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Mukhail Adetokunbo Abiru, FCA (Lagos East) and Senator Osita Bonaventure Izunaso (Imo West). The Senate also noted that the investigative hearing will also extend to other ponzi schemes, where Nigerians lost humongous fortunes.
Senator Abiru, while presenting the motion noted that “The economic wellbeing and financial security of Nigerian citizens are essential pillars of national stability and growth, and that it is the duty of government to protect the populace from exploitative, predatory and fraudulent financial practices and schemes that threaten their livelihoods;
“Deeply concerned about the rapid proliferation and alarming rise of unregulated and fraudulent investment schemes—commonly known as Ponzi or pyramid schemes such as MMM Nigeria in 2016; MBA Forex in 2020, to mention a few—which have repeatedly defrauded millions of Nigerians, causing severe financial hardship and, in some cases, driving victims to depression, family breakdowns, and even suicide;
“Notes in particular the recent case of Crypto Bullion Exchange (CBEX), a digital investment platform which lured millions of Nigerians with the promise of outrageous returns, before suddenly collapsing and resulting in investors losing over ₦1.3 trillion (about $847 million), making it one of the most devastating financial scams in the country’s history;
“Also notes that the CBEX incident is not an isolated case, but part of an existing and growing pattern of unregulated and fraudulent schemes leveraging technology, and social media to deceive the public, often using tactics such as referral commissions, celebrity endorsements, and fake testimonials to build credibility and drive recruitment”.
The lawmaker was equally worried that relevant regulatory and security agencies could not stop the scheme in the tracks. “Shocked that despite the scale of operations and visibility of CBEX, it operated for an extended period without facing sanctions by either the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC)” Abiru lamented.
Senator Muhammed Monguno (Borno North), Senator Sulaiman Umar Sadiq (Kwara North), Senator Solomon Adeola Olamilekan (Ogun West), Senator Adamu Aleiro(Kebbi Central), all supported the motion. The Senate thereafter mandated its Joint Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes, and ICT & Cyber Security to conduct a comprehensive investigative hearing, including public hearing, on the operations of Ponzi schemes in Nigeria, and report back in four weeks.
