The digital trading platform CBEX has collapsed, allegedly defrauding Nigerians of over ₦1.3 trillion. Operating without approval from the Securities and Exchange Commission (SEC), CBEX promised high returns but disappeared, leaving investors with locked accounts and vanished funds. This incident underscores the need for vigilance against unregulated investment schemes.
HIGHLIGHTS
- CBEX operated without SEC registration, making it illegal to solicit deposits.
- The platform promised unrealistic returns, a common red flag for Ponzi schemes.
- Investors faced withdrawal delays and locked accounts, indicating fraudulent activity.
- The House of Representatives has called for urgent action against such schemes.
- The Investment and Securities Act 2025 criminalizes Ponzi schemes, with penalties up to 10 years in prison.
CBEX's collapse highlights the persistent issue of Ponzi schemes in Nigeria. Despite regulatory measures, many Nigerians continue to fall victim to such scams, often due to promises of high returns and a lack of awareness. The recent legislative changes aim to strengthen enforcement and protect investors, but public education remains crucial in preventing future fraud.
Stay informed and cautious when considering investment opportunities. Always verify the legitimacy of platforms and be wary of offers that seem too good to be true. For more insights on avoiding financial scams,
