The Senate has initiated a comprehensive investigation into the alarming proliferation of Ponzi schemes across the country.
This decision comes in the wake of the reported collapse of the Crypto Bullion Exchange (CBEX), which is alleged to have defrauded investors of over ₦1.3 trillion.
The move was prompted by a motion introduced by Senator Adetokunbo Abiru, representing Lagos East.
In his presentation, the lawmaker voiced profound concern over the unbridled spread of fraudulent investment schemes, referencing past notorious examples such as MMM Nigeria in 2016 and MBA Forex in 2020, and now the recent CBEX.
These schemes typically entice millions of Nigerians with promises of exorbitant returns on digital assets.
During the ensuing debate, senators warned of the severe financial and psychological repercussions stemming from CBEX’s collapse.
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They noted that victims have been pushed into depression, experienced family disintegration, and, in some tragic instances, resorted to suicide.
The legislative body expressed shock that CBEX managed to operate without timely intervention for months, despite its extensive activities and visible online presence, from regulatory agencies like the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
A joint committee has been tasked with conducting the investigation and is expected to hold a public hearing in the coming weeks.
The committee is mandated to submit its findings to the Senate within one month.
Meanwhile, the EFCC previously stated that it had warned Nigerians against investing in such fraudulent schemes.
Dele Oyewale, spokesperson for the EFCC, speaking on Channels Television’s ‘The Morning Brief’, reiterated the Commission’s efforts to educate the public about the inherent dangers of these criminal enterprises.
“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list – that shows that we’re proactive and we have our hands on what is happening,” Oyewale stated.
Further action by the EFCC occurred on April 25, when Justice Emeka Nwite of the Federal High Court, Abuja, granted the Commission’s request to arrest and detain six promoters of CBEX.
This judicial approval was sought pending the conclusion of investigations into alleged investment fraud exceeding $1 billion and their potential prosecution.
The anti-graft agency’s ex parte application sought warrants for the arrest of the defendants and their remand in EFCC custody, citing its statutory duty to prevent and investigate financial crimes.
