- Calls for public hearing
Bonny Amadi with agency reports
The Nigerian senate has resolved to investigate the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) over their failure to prevent the operations of Crypto Bridge Exchange (CBEX), a fraudulent digital investment platform that defrauded Nigerians of over N1.3 trillion.
The resolution followed a motion sponsored by Tokunbo Abiru, senator representing Lagos east, and Osita Izunaso, senator representing Imo west, during plenary on Wednesday July 09,2025.
It will be recalled that earlier in April 2025, frightening reports emerged that Nigerians lost over $1 billion to CBEX after the Ponzi scheme crashed.
The lawmakers said CBEX promised investors outrageous returns before suddenly collapsing, making it one of the most devastating Ponzi schemes in the country’s investment history.
The senate expressed shock that CBEX operated for an extended period without regulatory intervention from the CBN, SEC, the Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC).
It said the lack of proactive regulation or timely action by the agencies enabled the platform to thrive, deceiving millions of Nigerians through aggressive marketing tactics, including referral bonuses, fake testimonials, and celebrity endorsements.
The lawmakers said the CBEX incident is not isolated but part of a growing pattern of fraudulent investment platforms exploiting gaps in regulation and public financial literacy.
They warned that continued failure by regulators risks further eroding public trust in legitimate financial institutions and poses systemic threats to the economy.
The senate noted that widespread poverty, high youth unemployment, and limited access to safe investment options have left many Nigerians vulnerable to fraudulent schemes.
Also, the upper chamber said the operators of ponzi platforms prey on the vulnerabilities, pushing citizens into deeper financial hardship and, in some cases, triggering depression and suicide.
Mohammed Monguno, senator representing Borno north, said ponzi schemes have become a threat to the socio-economic well-being of Nigerians.
“They take advantage of vulnerable and gullible Nigerians. They cash in on that and perpetrate crimes that defraud people of their hard-earned money, sending some to their early graves,” Monguno said.
Sadiq Umar, senator representing Kwara north, said the legislature must continually monitor financial schemes to protect citizens through investigations and new laws.
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