By Chinenye Anuforo
Thousands of Nigerians are grappling with financial loss following the collapse of CBEX, a digital investment platform now at the center of allegations of orchestrating a massive Ponzi scheme.
Reports indicate that the platform allegedly absconded with over N1.3 trillion (approximately $850 million USD) from unsuspecting investors, triggering widespread panic and despair across the country.
The implosion of CBEX has unleashed a torrent of heartbreaking stories, many shared on social media, depicting individuals who have lost their life savings. One victim, in a transcribed audio obtained by Daily Sun, recounted how a trusted friend introduced her to the platform, promising a 100 per cent return on bitcoin investment within 35 to 40 days for a mere $100 investment.
Despite initial skepticism rooted in past experiences with similar schemes, the victim was swayed by a visit to CBEX’s purported office in Egbeda and the sight of what appeared to be an official endorsement. “I visited the office only to see even a kind of a certificate from EFCC that they are aware of these people, that they are not scammers and the rest of them. So that convinced me into investing $100,” the individual stated.
Fueled by the enticing promise and testimonies from early investors, many poured significant sums into the platform. The victim in the audio explained her initial cautious approach, “I only invested the $100 because right inside me, I know that such investment shouldn’t be trusted. I put the $100 waiting for the 35 days to exhaust so as to withdraw my initial capital. Unfortunately, this never happened.”she said.
The nightmare unfolded last week when investors attempted to withdraw their matured funds, only to discover the withdrawal option has been stopped. “As my investment matured last week Monday, I planned to withdraw it this week, only for us to wake up yesterday, 14th of April, around 5 p.m. and found out that all the money into our account has vanished,” the distraught investor revealed.
This is just one of a multitude of harrowing accounts. Reports circulating online detailed a woman who allegedly invested her entire life savings, totaling N3 million, and a man who purportedly wrote a suicide note after investing his house and borrowed funds into the now-defunct scheme.
The transcribed audio highlighted the tragic human cost, stating, “About three people have been reported dead. So many attempted suicide because of this Ponzi scheme.”
The sheer scale of the alleged fraud has ignited public outrage and prompted serious questions regarding regulatory oversight. “The question now is to the authorities, where are they, when Nigerians are injecting this kind of money in this kind of investment?,” the anonymous victim questioned in the audio. The presence of physical offices in prominent locations like Egbeda and Ikeja seemingly lent an air of legitimacy to the operation.
Financial analysts pointed out that the Central Bank of Nigeria (CBN) has repeatedly warned the public about the dangers of Ponzi schemes promising unrealistic returns. A Lagos-based foreign exchange broker, @Obobanj, echoed this in a tweet : “The Central Bank of Nigeria (CBN) has long warned citizens about the dangers of Ponzi schemes, cautioning against investments that promise unrealistic returns. Despite this, platforms like CBEX continue to attract large followings, often collapsing without warning and leaving chaos in their wake.”
Reactions on social media platform X have been a mix of shock, anger, and even criticism towards the victims. While some expressed sympathy for those who lost their savings, others blamed investors for ignoring obvious red flags. “Nigerians don’t learn,” tweeted @ricky_chiekezie, reflecting a sentiment of frustration over the recurring nature of such scams.
However, the human tragedy remains undeniable. The desperation evident in the transcribed audio – “God, oh, God, oh, what have I done to deserve this? Huh? What have I gotten myself into? God, please help me. Hey, whoa. CBEX has finally killed me, oh” underscored the profound impact of this alleged fraud on individuals and families.
As affected Nigerians grapple with their losses, the focus now shifts to holding the perpetrators accountable and seeking potential avenues for redress. The authorities are under increasing pressure to launch a thorough investigation into CBEX and bring those responsible for this devastating financial blow to justice. “The collapse serves as a reminder of the critical need for financial literacy and vigilance in the face of seemingly lucrative investment opportunities”, the exchange broker stated.