The Securities and Exchange Commission (SEC) has declared that the recovery of the over ₦1.3 trillion lost by Nigerian investors in the collapsed investment scheme operated by CBEX Global Investment Limited is unlikely.
The Commission made this grim revelation on Friday while addressing concerns from affected investors and members of the public who have been demanding restitution following the collapse of the controversial investment platform.
According to SEC officials, preliminary investigations revealed that CBEX operated as a Ponzi scheme, collecting funds from unsuspecting Nigerians with promises of outrageous returns.
The funds, however, were allegedly funneled through untraceable channels and offshore accounts, making recovery efforts practically impossible.
“The unfortunate reality is that the funds invested in CBEX are gone”. An official confirmed.
“Due to the nature of the scheme and the lack of proper financial trail, the chances of retrieving the money are extremely slim, if not nonexistent.” He added.
CBEX Global Investment Limited, which gained popularity across Nigeria through aggressive marketing and referral programs, lured thousands of Nigerians with the promise of monthly returns as high as 25 percent.
The company abruptly shut down operations late last year, triggering widespread panic among investors.
The SEC had earlier issued warnings about the operations of CBEX and similar unregistered investment platforms, urging the public to exercise caution.
Meanwhile, several victims have taken to social media to express frustration over the loss of their life savings, with many calling on the government to intensify efforts to bring the perpetrators to justice.
Legal proceedings against key promoters of the scheme are said to be ongoing, with the Economic and Financial Crimes Commission (EFCC) reportedly collaborating with the SEC to prosecute those behind the fraudulent operation.
