EFCC responds to N1.3tn CBEX scam, reinforces warnings against Ponzi schemes

In the wake of public outrage following the sudden collapse of CryptoBank Exchange (CBEX), a digital investment platform allegedly responsible for the loss of over N1.3 trillion in Nigerian investments, the Economic and Financial Crimes Commission (EFCC) has reiterated its consistent warnings to the public against Ponzi and fraudulent investment schemes.

Speaking on Channels Television’s The Morning Brief on Wednesday, EFCC spokesperson Dele Oyewale emphasized that the Commission had been proactive in alerting Nigerians about such criminal operations long before the CBEX crisis emerged.

“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, directed us to release a public warning about 58 fraudulent investment platforms. That list included CBEX-type operations,” Oyewale said. “This shows we were not caught unaware. We have been working behind the scenes — before, during, and after public complaints surfaced.”

CBEX, reportedly a Chinese-owned online digital trading firm, allegedly lured thousands of Nigerian investors with promises of unrealistically high returns before crashing on Monday. Many have since been unable to access their funds, with emotional videos of victims flooding social media platforms.

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Oyewale, however, maintained that the EFCC cannot be held accountable for individual decisions to patronize unlicensed digital platforms. He stressed that the agency had issued repeated warnings and educational content on the dangers of unregulated online investments.

“The CBEX scheme is entirely virtual. Its so-called local offices in Ibadan and elsewhere were not functional or verifiable. It operated outside Nigeria’s regulatory radar,” he explained. “We’ve educated Nigerians on the need to verify compliance with laws such as the Money Laundering Act, Proceeds of Crime Act, and the Terrorism Financing Act before committing funds to any investment scheme.”

He also pointed to the recently passed Investment and Securities Act 2025, describing it as a robust legal framework that criminalizes any form of digital trading not licensed or regulated by Nigerian authorities.

Cautioning the public against get-rich-quick promises, Oyewale said, “No credible financial institution can guarantee 100% return on investment in 30 days. Even the Central Bank’s current interest rate is 27.5%. So when someone promises double returns in a month, it’s clearly a red flag.”

Despite the magnitude of the CBEX fraud, the EFCC assured Nigerians that all is not lost. According to Oyewale, the Commission is working closely with international partners, including Interpol, to trace the perpetrators and recover stolen funds.

“It would be irresponsible for us to fold our arms and declare the case closed,” he said. “We are engaging with Interpol and other global agencies to bring the culprits to justice. Restitution for victims may take time, but we are determined. Investors will not be abandoned.”

He added, “This situation could have been avoided. But our commitment now is not just to investigate and prosecute, but to recover as much as possible and protect future investors. Escapism is not an option.”

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