By Joy Odor
Nigeria’s upper legislative chamber has opened a full-scale offensive against Ponzi operators after the Economic and Financial Crimes Commission (EFCC) revealed that a staggering N1.3 trillion is linked to the collapsed Crypto Bullion Exchange (CBEX) scheme.
The explosive disclosure triggered a sweeping probe by the Senate Committee on Banking, Insurance and Other Financial Institutions, which on Wednesday convened a high-stakes public hearing to dissect the proliferation of fraudulent investment platforms and tighten regulatory loopholes.
At the centre of the storm is CBEX Crypto Bullion Exchange, a digital investment platform that lures Nigerians with promises of 100 per cent returns powered by artificial intelligence-driven crypto trading.
Representing EFCC Chairman Olanipekun Olukoyede, Cybercrime Section Supervisor Dein Whyte told lawmakers that while early projections placed investor exposure at N1.3 trillion, forensic blockchain analysis has so far traced over $46 million in USDT stablecoin inflows into wallets linked to the scheme.
“The promoters structured the scheme to ensure victims converted naira into digital assets before investing, effectively erasing direct cash trails,” Whyte disclosed.
According to the EFCC, CBEX began operations in mid-2024, deploying aggressive digital marketing campaigns, hosting physical conferences and registering a special purpose vehicle with the Corporate Affairs Commission under a different corporate identity.
Investigators uncovered a network of Nigerian promoters collaborating with foreign actors based in Southeast Asia.
Digital infrastructures have been seized, suspicious funds frozen, and local operators are currently facing prosecution for running an unlicensed exchange.
In a striking revelation, the EFCC clarified that the promoters had secured only an onboarding certificate from its Special Control Unit Against Money Laundering but falsely paraded it as full regulatory approval.
Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, said the investigation runs parallel with proposed amendments to the Banks and Other Financial Institutions Act 2020 (BOFIA), aimed at fortifying oversight of digital platforms and shutting down grey zones exploited by fraudulent operators.
“The goal is clear to close regulatory cracks and prevent another systemic exploitation of Nigerians,” Abiru said.
Lawmakers described the scale of the alleged fraud as a direct threat to financial system stability and consumer confidence.
The hearing also turned the spotlight on fintech operators, with senators voicing concern over the increasing use of platforms such as OPay and Moniepoint by fraudsters and kidnappers to receive illicit funds.
The Senate Chief Whip recounted a personal brush with attempted digital fraud, questioning why such platforms appear to be preferred channels for criminal transactions.
Responding, a Moniepoint representative attributed the trend to the speed, accessibility and affordability of digital payments but admitted that identity trading and account-sharing practices complicate traceability.
The company pledged to expand its physical branch footprint nationwide before 2028 to improve accountability and dispute resolution.
While stakeholders broadly endorsed the BOFIA amendment, financial operators cautioned against duplicating compliance requirements already imposed by the Central Bank of Nigeria, warning that overlapping regulations could stifle innovation.
Some lawmakers further flagged potential conflicts between proposed amendments and provisions of the Nigerian Communications Act, urging a technical harmonisation to prevent legal inconsistencies.
The committee resolved to constitute a multi-sector technical team comprising regulators, legal experts and financial industry stakeholders to refine the draft legislation.
The public hearing comes amid rising digital investment scams despite repeated advisories from the EFCC.
Authorities warn that the allure of unrealistic, high-yield returns continues to override caution among retail investors.
For policymakers, the CBEX collapse represents more than another fraud case it is a systemic stress test for Nigeria’s fast-evolving digital financial ecosystem.
As the Senate sharpens its legislative tools and enforcement agencies deepen investigations, the message from Abuja is unmistakable: the era of billion-naira Ponzi free-for-all may be approaching its reckoning.
