The Economic and Financial Crimes Commission (EFCC) has launched an investigation into a suspected N1.3 trillion fraud linked to the collapse of CryptoBank Exchange (CBEX), a digital investment platform operated by foreign nationals in collaboration with Nigerian partners.
CBEX reportedly crashed on Monday, leaving thousands of investors unable to access their funds. The platform, which promised 100% returns in 30 days, suddenly restricted withdrawals on April 9, 2025, and later wiped out users’ account balances, demanding new deposits for verification.
EFCC spokesman, Dele Oyewale, confirmed the commission had begun investigating CBEX before its collapse and would now collaborate with INTERPOL to trace both local and international operators of the alleged Ponzi scheme.
“We had our intelligence before the incident. Now that the scheme has collapsed, the major actors and collaborators will be brought in,” Oyewale stated. “We are committed to saving Nigerians from the dangers of Ponzi schemes.”
He emphasized that the EFCC is also working to identify and dismantle similar fraudulent operations across the country and will pursue recovery and prosecution where possible.
Preliminary reports estimate investor losses at over $847 million in USDT, though the figure may rise. Victims said CBEX manipulated users by asking for additional deposits — $100 to $200 — before allowing access to their locked funds.
The platform, which had frequently changed its domain name since January 2024, was widely promoted on social media and peer networks. Many Nigerians were drawn in by promises of unrealistic profits and testimonials of early success.
Public backlash erupted following the crash. In Ibadan, Oyo State, angry investors stormed the CBEX office in Oke Ado, looting furniture and equipment. Security agents from the Nigeria Police and Operation Amotekun were deployed to prevent further chaos.
In Abuja, the CBEX office in Jahi district was shut down. A security guard told The PUNCH that no staff reported to work and the premises were locked to avoid possible attacks from enraged investors.
Victims shared stories of massive losses. One woman said she lost $10,000 after being convinced by a friend’s profit. Another, saving for her wedding, revealed she lost $1,000 and felt numb. On Facebook, a user lamented that her brother had lost his school fees to the scheme and couldn’t face their parents.
A businessman who escaped major losses after investing just $100 said he felt guilty that three friends he introduced lost $8,000.
Reacting on social media, FCT Minister’s spokesman Lere Olayinka criticized victims, saying: “I don’t have sympathy for greed and foolishness.”
The incident follows recent warnings from the Securities and Exchange Commission (SEC), which had cautioned Nigerians against investing in unregistered trading platforms. Under the newly signed Investment and Securities Act, 2025, operating such platforms without registration is now a criminal offence.
SEC Director-General, Dr. Emomotimi Agama, said the Act is a major step toward regulating digital assets and ensuring investor protection.
“This law allows the SEC to enforce regulations in the digital investment space, ensuring only registered platforms operate legally,” Agama said.
In March, the EFCC released a list of 58 companies running illegal investment schemes. Some, including Wales Kingdom Capital and Titan Multibusiness Investment Ltd., have already faced legal action. Many lured victims with promises of high returns in sectors like agriculture, real estate, and forex.
Oyewale urged Nigerians to verify investment opportunities with the CBN and SEC and report any fraudulent activity. “We remain committed to protecting the public and creating a corruption-free economy,” he added.
As outrage grows over CBEX’s collapse, financial experts blame unchecked greed and poor financial literacy.
Banker and educator Kelechi Godfrey explained he was approached to promote the platform. “They claimed to trade crypto using AI with 100% returns in 30 days. When returns are too good to be true, something is wrong,” he warned.
Financial analyst Segun Aremu echoed the concern. “Greed drives people into Ponzi schemes. When saving for things like school fees, avoid risky investments. Nigerians need to understand their risk appetite and seek financial advice.”
He expressed hope that this experience would serve as a cautionary tale to prevent future losses.
