Senate probes collapse of Crypto defrauding Nigerians of #1.3 T

Austin Okoro DDM NEWS

Sen Godswill Akpabio

The Nigerian Senate has launched a comprehensive investigation into the collapse of Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion.

This Ponzi scheme is considered one of the largest financial scams in the nation’s history, leaving many investors financially devastated.

The Senate’s investigation aims to uncover the regulatory failures that allowed CBEX to operate unchecked.

Senator Abiru criticized the lack of intervention from regulatory bodies, including the Central Bank of Nigeria, the Securities and Exchange Commission, the Economic and Financial Crimes Commission, and the Nigerian Financial Intelligence Unit.

He emphasized that their silence enabled the scam to flourish despite clear warning signs .

The Senate highlighted weaknesses in the regulatory framework that allowed Ponzi schemes like CBEX to thrive.

The collapse of CBEX has resulted in significant financial losses for investors, with many suffering psychological distress, depression, and even suicidal thoughts.

The Senate is concerned about the impact of such schemes on Nigeria’s financial stability and public trust in formal financial systems .

The Senate has mandated a joint committee to conduct a full investigation, including public hearings across Nigeria’s six geopolitical zones.

The committee is expected to report back within four weeks with recommendations for regulatory and legal reforms.

The Senate has also declared a financial emergency, emphasizing the need for decisive action to prevent future occurrences.

Senate President Godswill Akpabio drew parallels with past Ponzi schemes, noting that history is repeating itself on a larger scale.

He stated, “People lost everything. History is repeating itself, only now on a bigger scale—₦1.3 trillion gone.

Students, civil servants, even pensioners were affected. This is an emergency”

The joint committee will conduct Public Hearings, gather evidence and testimonies from affected individuals and regulatory bodies.

Examine the role of regulatory agencies in allowing CBEX to operate unchecked.

Propose measures to prevent future financial scams and strengthen regulatory frameworks.

The Senate’s investigation into the CBEX collapse highlights the need for robust regulatory frameworks to protect investors and maintain financial stability.

The outcome of this probe is expected to have significant implications for Nigeria’s financial sector and regulatory environment..

The motion to probe the crisis, jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous backing across party lines during Wednesday’s plenary session.

Lawmakers decried the persistent failure of regulatory bodies to prevent the proliferation of fraudulent investment platforms that continue to exploit Nigerians.

Senator Abiru, while presenting the motion, accused CBEX of exploiting lapses in oversight by institutions such as the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).

“Over ₦1.3 trillion was lost to CBEX alone,” he said. “This is not an isolated incident. It continues a disturbing trend dating back to scams like MMM in 2016 and MBA Forex in 2020. Nigerians are repeatedly being defrauded.”

He also cited rising rates of depression and suicide among victims, warning that the continued erosion of public trust in financial institutions threatens Nigeria’s economic stability.

Senator Tahir Monguno (Borno North) described the situation as “alarming,” urging a swift overhaul of legal frameworks to ensure accountability.

“We must act decisively. Offenders must face justice. Enough is enough,” Monguno said.

Other senators echoed these concerns. Senator Sadiq Umar (Kwara North) emphasized institutional failure, saying, “Regulators must wake up. Nigerians rely on them to protect their interests not remain passive.”