Reps react after ₦1.3 trillion crypto scam ruins lives

DDM News

The House of Representatives has sounded an alarm over the collapse of a fraudulent cryptocurrency investment scheme known as “CBEX,” which has reportedly duped thousands of Nigerians.

According to Diaspora digital media (DDM), in a statement issued on Thursday by the House Spokesman, Hon. Akin Rotimi Jr., lawmakers expressed deep concern over the growing risks posed by unregulated digital investment platforms.

The CBEX platform is alleged to have operated under false pretenses, misleading the public with promises of high returns while lacking registration with the Securities and Exchange Commission (SEC).

Preliminary investigations suggest that CBEX may have defrauded investors of more than ₦1.3 trillion, causing severe financial distress to many Nigerian households.

The platform deceptively used the acronym “CBEX,” which closely resembles the China Beijing Equity Exchange—a reputable equity trading institution in China.

However, the China Beijing Equity Exchange has publicly disassociated itself from the Nigerian platform, clarifying that it has no involvement in digital asset trading or operations in Nigeria.

Lawmakers have described the scheme as elaborate and malicious, preying on the ignorance and desperation of many citizens seeking financial opportunities.

The House extended its sympathy to victims of the scam, many of whom are reportedly struggling with the uncertainty and hardship that followed their financial losses.

To address the fallout, the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force have begun investigations in collaboration with Interpol.

The objective of the investigation is to trace the masterminds behind the fraudulent platform and recover the misappropriated funds where possible.

The House called on these law enforcement agencies to act swiftly and effectively in arresting the perpetrators and ensuring that justice is served.

Lawmakers believe the failure of CBEX highlights the urgent need for tighter regulation and increased public awareness surrounding financial investments.

They also pointed to the newly enacted Investment and Securities Act (ISA), 2025, as a critical tool for combating such fraudulent activities.

This new legislation, signed into law by President Bola Ahmed Tinubu, GCFR, is the product of extensive efforts spanning the 8th, 9th, and 10th National Assemblies.

The ISA, 2025, enhances the enforcement powers of the SEC, introduces harsher penalties for investment fraud, and criminalises Ponzi schemes.

Under this law, individuals found guilty of promoting or running fraudulent investment schemes may face imprisonment for up to ten years.

The House emphasized that this reform not only deters fraud but also strengthens investor protection mechanisms in the country.

Rep. Solomon T. Bob, Chairman of the House Committee on Capital Market and Institutions, stressed the importance of public education in the fight against financial fraud.

He stated that enforcement alone is not enough and that financial literacy must be a cornerstone of national economic development.

According to Rep. Bob, “Financial literacy is not optional; it is essential in building a resilient and inclusive economy.”

He warned that fraudulent schemes flourish where there is limited public understanding of financial matters.

The House urged citizens to remain vigilant and skeptical of investment opportunities that promise high returns with little or no risk.

Lawmakers advised Nigerians to always verify investment schemes with the SEC or other recognized regulatory authorities before committing any money.

They also cautioned public figures, celebrities, and influencers about promoting unregistered financial products and schemes.

Under the ISA, 2025, individuals who endorse fraudulent investments may be held liable for aiding financial deception and misleading consumers.

The House reminded all stakeholders of their civic and legal responsibilities in protecting citizens from scams and fraud.

It further called on schools, faith-based institutions, the media, and civil society organizations to help promote nationwide financial education.

Lawmakers believe that collective awareness efforts are crucial in shielding citizens from predatory investment schemes.

They emphasized that educating the public about the signs of financial fraud could save thousands from future economic hardship.

This initiative aligns with Agenda 4 of the 10th Assembly’s Legislative Agenda (2023–2027), which focuses on economic growth and development.

The House reaffirmed its commitment to fostering safe, transparent, and inclusive capital markets that support national development.

Lawmakers assured Nigerians that they will continue to advocate for legislation that strengthens regulatory oversight and protects investors.

They also pledged to support institutional reforms that promote accountability, financial stability, and economic justice for all.

The collapse of CBEX serves as a stark reminder of the dangers posed by unchecked financial schemes in the digital age.

It underscores the importance of continuous vigilance, robust legal frameworks, and proactive public engagement in safeguarding the financial welfare of citizens.

The House concluded by reiterating that its mission remains to ensure a secure investment environment that empowers Nigerians rather than exploits them.

With coordinated efforts from government, regulators, and the public, lawmakers believe Nigeria can curb the menace of financial fraud.

The CBEX incident will serve as a case study for reform, regulation, and awareness in the nation’s evolving financial landscape.

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