CBEX’s Collapse Adds to Nigeria’s Ponzi Scheme History
In a significant blow to investors, CBEX has added to the long list of Ponzi schemes in Nigeria. After promising a 100% return in 30 days, the platform reportedly siphoned over N1.3 trillion when it crashed recently. This notorious event joins the ranks of past scams like MMM, impacting thousands of Nigerians and demonstrates the ongoing risk of unregulated ventures in the financial sector.
The Securities and Exchange Commission (SEC) has declared CBEX illegal, emphasising that such platforms often use weak structures under the guise of legitimacy. As the Nigeria news cycle reveals these ongoing schemes, the call for vigilance intensifies. This collapse highlights the dire need for awareness and protective regulations to safeguard citizens from fraudulent schemes.
- CBEX misled investors with a 100% return promise.
- It siphoned over N1.3 trillion when it crashed.
- SEC confirmed CBEX operated illegally without registration.
Analysis: The recurrent occurrences of Ponzi schemes like CBEX in Nigeria highlight a significant regulatory gap in the financial sector. There’s a pressing need for better awareness among the public and stricter regulatory oversight to prevent future financial catastrophes.
Read more about CBEX investors: BusinessDay
Discussion Question: How can authorities increase public awareness to curb the allure of Ponzi schemes in Nigeria? Share your thoughts!
