The disclosure was made during a one-day public hearing on a motion to investigate Ponzi schemes in Nigeria, with particular reference to the recent CBEX incident, alongside deliberations on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA 2020).
Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, said the amendment bill and investigative hearing were aimed at closing regulatory gaps exploited by unlicensed digital platforms and fraudulent investment operators.
Speaking at the hearing, the Executive Chairman of the EFCC, Olanipekun Olukoyede, was represented by Dein Whyte, Cybercrime Section Supervisor of the commission, who presented detailed findings of the agency’s investigation into CBEX and other emerging Ponzi schemes.
Whyte told lawmakers that CBEX, also known as Crypto Bullion Exchange, began operations in mid-2024 and promised investors 100 per cent returns using artificial intelligence-driven crypto trading.
According to him, while initial estimates placed investor exposure at N1.3 trillion, blockchain analysis traced over $46 million in stablecoin (USDT) inflows into identified wallets linked to the scheme.
“The promoters ensured that victims converted their naira into digital assets before investing, thereby avoiding direct cash trails,” he said.
Whyte disclosed that the platform operated through aggressive online and physical promotions, even holding conferences and registering a special purpose vehicle with the Corporate Affairs Commission under a different name.
He added that investigations uncovered Nigerian promoters working with foreign collaborators based in Southeast Asia. Some digital infrastructures have been seized, certain funds frozen, and Nigerian promoters are currently facing prosecution for operating an unlicensed exchange.
The EFCC also clarified that the operators had obtained an onboarding certificate from its Special Control Unit Against Money Laundering but falsely presented it as full regulatory clearance.
During the session, several senators raised concerns about the increasing use of fintech platforms such as Opay and Moniepoint by fraudsters and kidnappers to receive illicit funds.
The Chief Whip of the Senate recounted a personal experience of attempted digital fraud, questioning why such platforms appear to be preferred channels for criminal transactions.
In response, a representative of Moniepoint attributed its popularity to accessibility, affordability and instant transaction confirmation. However, he acknowledged challenges in tracing funds where individuals sell their identities or allow their accounts to be used by third parties.
He assured lawmakers that the company plans to expand its physical branch presence nationwide before 2028 to strengthen accountability and customer complaint mechanisms.
Stakeholders at the hearing broadly supported the BOFIA amendment but cautioned against regulatory overlaps. Financial operators urged the committee to harmonise new reporting requirements with existing Central Bank of Nigeria obligations to avoid duplication.
Some lawmakers also flagged potential conflicts between the proposed amendments and provisions of the Nigerian Communications Act, recommending a technical review to eliminate inconsistencies.
The committee resolved to constitute a technical team comprising regulatory experts, legal practitioners and financial sector stakeholders to review submissions and fine-tune the proposed legislation.
Senator Abiru emphasised that the objective is to produce “a conclusive and useful legislation” capable of strengthening Nigeria’s financial ecosystem, enhancing consumer protection and preventing future large-scale investment fraud.
The public hearing comes amid growing concerns over digital investment scams, with the EFCC warning that despite repeated advisories, Nigerians continue to patronise high-yield schemes promising unrealistic returns.
Lawmakers said the outcome of the investigation would inform stronger regulatory safeguards to restore confidence in the country’s financial system.
