In a decisive move to address the escalating wave of financial scams and protect unsuspecting citizens, the Nigerian Senate has launched a comprehensive probe into the proliferation of Ponzi schemes across the country, specifically highlighting the recent collapse of CryptoBridge Exchange (CBEX) which resulted in an estimated N1.3 trillion loss for investors.

The Senate’s decision, announced on Wednesday, July 9, 2025, comes amidst widespread public outcry and a growing number of victims left in financial ruin by illicit investment platforms. CBEX, operating under the corporate identity of ST Technologies International Ltd., abruptly collapsed around mid-April 2025, leaving thousands locked out of their accounts.

Investigations by the Nigerian Financial Intelligence Unit (NFIU) revealed that CBEX operated as a classic Ponzi scheme, promising enticing returns of up to 100% in as little as 30 to 45 days, leveraging the allure of cryptocurrency trading and artificial intelligence-driven strategies. It paid initial investors with funds collected from new participants, a model that inevitably crumbled when the inflow of fresh capital diminished. The Economic and Financial Crimes Commission (EFCC) has since labeled CBEX a Ponzi scheme and launched its own full-scale investigation, partnering with Interpol to track culprits both locally and internationally.

Financial regulatory bodies, including the Securities and Exchange Commission (SEC), have repeatedly warned Nigerians against unregulated investment schemes. The SEC had confirmed that CBEX was never registered to operate as a Digital Assets Exchange or to solicit investments from the public in Nigeria. Despite ongoing probes, reports in early May 2025 indicated attempts by CBEX to resume operations, demanding additional payments from investors under the guise of “insurance verification” to access limited funds.

The Senate’s investigation aims to uncover the full extent of losses, identify those responsible for these fraudulent schemes, and explore legislative measures to strengthen Nigeria’s financial regulatory framework. This proactive stance is crucial as Ponzi schemes continue to evolve, with the NFIU noting a recent trend of such frauds leveraging digital assets, making them more sophisticated, borderless, and challenging to trace.

Authorities, including the EFCC, have intensified public enlightenment campaigns to caution Nigerians against “get-rich-quick syndromes,” citing not only CBEX but also past schemes like MMM Nigeria, MBA Forex, and Chinmark Group, which collectively defrauded citizens of trillions of naira. The newly signed Investments and Securities Act 2025 has already introduced stringent penalties for promoters and operators of Ponzi schemes, including fines of not less than N20 million or imprisonment of up to 10 years, or both, upon conviction.

The Senate’s probe is expected to provide a clearer path towards justice for victims and pave the way for more robust legal and regulatory mechanisms to prevent such financial catastrophes in the future.