From MMM to CBEX: Nigerians loses over N1.3trn to Ponzi schemes in nine years

Grief, shock, and anger have gripped Nigerians after CBEX, a digital asset platform, disappeared with N1.3 trillion.

The platform, once celebrated, froze operations on Monday April 14, 2025, leaving thousands of investors stranded and desperate for answers.

CBEX’s collapse marks Nigeria’s biggest Ponzi scheme so far, surpassing past losses estimated at N300 billion since 2016.

Victims include retirees, students, traders, and job seekers who invested life savings, pensions, and borrowed funds.

Cryptocurrency expert Taiwo Owolabi revealed that $847 million USDT was diverted from CBEX into private wallets.

At N1650 per dollar, the diverted funds are worth N1.4 trillion, making this fraud unprecedented in scale.

Owolabi explained that CBEX moved investors’ money across wallets to hide actual figures.

Diaspora Digital Media (DDM) could not independently verify the total amount lost or number of affected Nigerians.

The Securities and Exchange Commission (SEC) said Nigerians lost N300 billion to Ponzi schemes between 2016 and 2023.

IAS and other schemes recently crashed, trapping billions more from struggling Nigerians.

Many victims report emotional trauma, medical breakdowns, and suicidal thoughts following CBEX’s sudden disappearance.

Reports has it that in Ibadan, over 27 people have been hospitalised, sparking demands for government intervention.

Critics argue that government failure to create jobs pushes youths toward risky schemes like CBEX.

Analysts say weak regulation and poor financial education help Ponzi platforms flourish in Nigeria.

DDM also reported that President Bola Tinubu recently signed the amended Investment and Securities Act (ISA) 2025 into law.

The new law criminalises Ponzi schemes and empowers SEC to prosecute with up to 10-year jail terms.

Despite warnings, many ignored red flags due to desperation and peer pressure on social media.

Referrals, fake earnings screenshots, and online hype lured thousands into CBEX’s trap.

By Monday morning, the platform vanished, its website crashed.

Social media went silent. Apps became inaccessible.

Victims now demand justice, with civil groups calling for recovery task forces and compensation programs.

Experts stress that stronger laws are not enough without proper investor education and strict enforcement.

Investor Amaechi Egbo said ignorance, not just greed, drives the spread of fraudulent investment schemes.

He called for nationwide campaigns to teach citizens how to identify and avoid such scams.

Shareholders’ groups urged SEC to shut down unregistered platforms and boost awareness using social media.

CBEX joins a long list of digital scams including MMM, Racksterli, Chinmark, Loom, and IAS.

All followed a familiar pattern grand promises, rapid expansion, and a sudden, devastating collapse.

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