By Kayode Araba
Thus, the senate Committee on Banking, Insurance and Other Financial Institutions on Wednesday launched a sweeping probe into the operations of Ponzi schemes in Nigeria, following revelations by the Economic and Financial Crimes Commission (EFCC) that about N1.3 trillion was linked to the collapsed Crypto Bullion Exchange (CBEX) scheme.
This was made known during a one-day public hearing on a motion to investigate Ponzi schemes in Nigeria, with particular reference to the recent CBEX incident, alongside deliberations on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA 2020).
The Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, said the amendment bill and investigative hearing were aimed at closing regulatory gaps exploited by unlicensed digital platforms and fraudulent investment operators.
Speaking at the hearing, the Executive Chairman of the EFCC, Olanipekun Olukoyede, was represented by Dein Whyte, Cybercrime Section Supervisor of the commission, who presented detailed findings of the agency’s investigation into CBEX and other emerging Ponzi schemes.
Whyte revealed to the lawmakers that CBEX, also known as Crypto Bullion Exchange, began operations in mid-2024 and promised investors 100 per cent returns using artificial intelligence-driven crypto trading.
He further alluded to the fact that initial estimates placed investor exposure at N1.3 trillion, blockchain analysis traced over $46 million in stablecoin (USDT) inflows into identified wallets linked to the scheme. That the promoters ensured that victims converted their naira into digital assets before investing, thereby avoiding direct cash trails,” he said.
Also, Whyte disclosed that the platform operated through aggressive online and physical promotions, even holding conferences and registering a special purpose vehicle with the Corporate Affairs Commission under a different name.
He also said that investigations uncovered Nigerian promoters working with foreign collaborators based in Southeast Asia. Some digital infrastructures have been seized, certain funds frozen, and Nigerian promoters are currently facing prosecution for operating an unlicensed exchange.
The EFCC also clarified that the operators had obtained an onboarding certificate from its Special Control Unit Against Money Laundering but falsely presented it as full regulatory clearance.
Therefore, the lawmakers said the outcome of the investigation would inform stronger regulatory safeguards to restore confidence in the country’s financial system.
