The Securities and Exchange Commission (SEC) has delivered a grim update on the collapsed CBEX Global Investment Limited, confirming that the over ₦1.3 trillion lost by investors is unlikely to be recovered.
The regulatory body identified the platform as a Ponzi scheme and issued a stern warning to Nigerians about the dangers of engaging in such fraudulent ventures.
According to SEC officials, CBEX lured unsuspecting individuals with promises of unrealistic returns, some as high as 25% monthly, without any credible business model to support such profits.
Instead, the company operated by using funds from new investors to pay off earlier participants, a hallmark feature of a Ponzi scheme.
“A Ponzi scheme thrives on deception. It offers mouth-watering returns to attract quick investments but has no sustainable source of income. Once new inflows slow down, the entire system collapses, leaving thousands in financial ruin.”
CBEX, which gained popularity through aggressive marketing and social media hype, attracted tens of thousands of Nigerians, including retirees, civil servants, and small business owners.
Many invested their life savings, only for the company to suddenly shut down operations in late 2024, cutting off communication with investors and disappearing without a trace.
The SEC, in collaboration with the Economic and Financial Crimes Commission (EFCC), has launched investigations into the promoters of CBEX.
However, the Commission says efforts to trace and recover the stolen funds have so far yielded no success due to the nature of the transactions, many of which were routed through unregulated platforms and foreign accounts.
This latest incident adds to a growing list of fraudulent schemes that have targeted vulnerable Nigerians seeking quick returns amid economic hardship.
The SEC has emphasized that legitimate investments require proper registration, transparency, and regulatory oversight—features Ponzi schemes lack entirely.
The Commission also called on traditional and digital media platforms to join the fight against financial fraud by verifying claims before amplifying investment advertisements.
