The Nigerian Senate has initiated a probe into the alarming rise of Ponzi schemes across the country, triggered by the recent collapse of the CryptoBridge Exchange (CBEX), which reportedly defrauded investors of over ₦1.3 trillion. This development underscores growing concerns about the unchecked proliferation of fraudulent investment platforms exploiting Nigerians’ quest for quick financial gains.
CBEX, a digital asset trading platform that gained rapid popularity by promising a 100% return on investment within 30 days, abruptly suspended withdrawals in early April 2025. The platform cited a “security breach” but soon became inaccessible, leaving thousands of investors unable to retrieve their funds. Many users reported their account balances dropping to zero, sparking widespread outrage and protests, including the ransacking of CBEX’s office in Ibadan, Oyo State.
While initial estimates of losses reached as high as ₦1.3 trillion (approximately $800 million), detailed analyses suggest that actual Nigerian losses may be lower but still substantial, with millions of dollars funneled through complex cryptocurrency wallets and smart contracts linked to CBEX operations. The platform’s sudden collapse has drawn parallels to infamous past scams like MMM, highlighting persistent vulnerabilities in Nigeria’s financial ecosystem.
In response, the Economic and Financial Crimes Commission (EFCC) has arrested several suspects connected to the scheme and vowed to intensify investigations. The agency confirmed ongoing probes into 58 pyramid schemes, emphasizing the need for public vigilance against schemes promising unrealistic returns. The Senate’s inquiry aims to understand the systemic failures that allowed such schemes to flourish and to recommend stronger regulatory frameworks to protect Nigerians.
Experts attribute the rise of Ponzi schemes like CBEX to a combination of financial illiteracy, lax regulatory oversight, economic hardship, and the allure of rapid wealth. The CBEX saga has reignited calls for enhanced financial education and stricter enforcement to safeguard the public from future scams.
As the Senate investigation unfolds, it represents a crucial step toward addressing the root causes of financial fraud in Nigeria and restoring investor confidence in legitimate digital financial services.