EFCC VOWS TO RECOVER INVESTORS’ FUNDS FROM CBEX, PROSECUTE PONZI SCHEME OPERATORS

EFCC VOWS TO RECOVER INVESTORS’ FUNDS FROM CBEX, PROSECUTE PONZI SCHEME OPERATORS

The EFCC pledges to recover investors' funds lost to CBEX, an alleged Ponzi scheme. Interpol and SEC join efforts to track operators and secure refunds for Nigerians.

Photo credit/EFCC/CBEX LOGO

The Economic and Financial Crimes Commission (EFCC) has vowed to ensure investors in the Ponzi scheme CBEX digital trading platform recover their money.

EFCC spokesperson, Dele Oyewale, made this known while speaking on Channels TV’s Morning Brief on Wednesday. According to him, the commission is working to ensure that Nigerians who invested in the platform are refunded.

"We are working with Interpol to ensure that these people are brought to book and investors get their money back. We are working on that. This thing could have been averted, but be it as it may, it was not averted. We are not going to throw our hands helplessly and say there is nothing the EFCC can do,” Oyewale said.

"We are more professional than that. Already, we have spread out our wings. We are talking to Interpol; we are talking to all necessary agencies across the world to bring the actors to book. We are going to bring them to book."

He noted that although refunds may not happen immediately, they are expected eventually.

"Investors will get their money back. It might not be in the short term, but I can assure you that the commission, as the leading anti-corruption agency in Nigeria, will not allow investors to lose their money like that.

"And say because they are not compliant with this or that—escapism is not the solution to any problem. We are going to do our work," he said.

CBEX is reportedly registered in Canada as a crypto exchange. However, checks by SaharaReporters on Canadian business registry platforms reveal that CBEX is not officially registered in Canada—despite the company’s Chief Executive Officer, Yahaya Ibrahim, reportedly claiming it is headquartered there.

The closest match to CBEX in the Canadian business directory is a now-defunct entity named CBEX Capital Corp, whose license was revoked a year ago.

Further investigation suggests that the name “CBEX” may have misled Nigerian investors. The acronym is originally associated with the China Beijing Equity Exchange, a platform owned by the Chinese government and used for mergers, acquisitions, and the restructuring of state-owned enterprises.

This may have contributed to the false impression that the platform was backed by the Chinese government, especially since online searches for "CBEX" mostly lead to the legitimate Chinese state-run entity.

Checks on the digital footprint of the name "CBEX" link primarily to the Chinese government-owned firm, which may have misled many Nigerians who searched for background information before deciding to invest.

SaharaReporters had earlier detailed how, following the collapse of the CBEX platform, a group of enraged individuals looted its office in the Oke Ado area of Ibadan, Oyo State. The attack, which occurred on Monday evening, involved mobs forcibly entering the premises and removing furniture and equipment.

According to eyewitnesses, the incident was triggered by the sudden crash of the platform, which reportedly wiped out user account balances and rendered many investments worthless.

In the aftermath of the collapse, affected users expressed grief and frustration on social media, sharing stories of lost funds and shattered hopes.

Responding to the situation, Nigeria’s Securities and Exchange Commission (SEC) reiterated that any platform not registered with the SEC is considered illegal.

During a virtual session with fintech stakeholders on Monday, SEC Director-General Emomotimi Agama stated: "Recently, a post went viral concerning a certain platform and its activities. The fallout includes news of its closure and financial losses. I want to be very clear: if it is not registered, it is illegal.”

Although he did not directly mention CBEX, the timing and context strongly suggested he was referring to the controversy.