Senate Uncovers N1.3tn CBEX Scam as EFCC Exposes Massive Ponzi Web

By Onwe Wisdom, Pan Afric Reporters

The Nigerian Senate has launched a far-reaching probe into the alarming rise of Ponzi schemes after the Economic and Financial Crimes Commission (EFCC) revealed that a staggering N1.3 trillion was linked to the collapsed Crypto Bullion Exchange (CBEX) fraud, sending shockwaves through the nation’s financial system.

The disclosure came on today Wednesday, 4th March, 2026 during a one-day public hearing convened by the Senate Committee on Banking, Insurance and Other Financial Institutions to investigate fraudulent investment schemes, with particular focus on the CBEX debacle. The hearing also examined a proposed amendment to the Banks and Other Financial Institution Act (BOFIA 2020), aimed at tightening regulatory loopholes exploited by rogue digital operators.

Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, said both the investigative hearing and the amendment bill were designed to curb the excesses of unlicensed digital platforms and protect unsuspecting investors from financial predators.

Representing EFCC Chairman Olanipekun Olukoyede, the Commission’s Cybercrime Section Supervisor, Dein Whyte, laid bare the scale and sophistication of the CBEX operation. He disclosed that the scheme, which commenced in mid-2024, lured investors with promises of 100 per cent returns through purported artificial intelligence-powered crypto trading.

While initial estimates suggested investor exposure of about N1.3 trillion, blockchain analysis uncovered over $46 million in stablecoin (USDT) inflows into digital wallets traced to the fraudulent network.

“The promoters ensured victims converted their naira into digital assets before investing, thereby eliminating direct cash trails,” Whyte told lawmakers.

He further revealed that the platform ran aggressive online and physical campaigns, organised promotional conferences, and even registered a special purpose vehicle with the Corporate Affairs Commission under a different name to appear legitimate.

Investigations also uncovered links between Nigerian promoters and foreign collaborators based in Southeast Asia. The EFCC has since seized parts of the scheme’s digital infrastructure, frozen some funds, and commenced prosecution against Nigerian operators for running an unlicensed exchange.

The anti-graft agency clarified that although the operators obtained an onboarding certificate from its Special Control Unit Against Money Laundering, they deceptively presented it as full regulatory approval.

During deliberations, senators expressed deep concern over the growing use of fintech platforms such as Opay and Moniepoint by fraudsters and kidnappers to receive illicit funds. The Senate Chief Whip recounted a personal experience with attempted digital fraud, questioning why such platforms have become preferred channels for criminal transactions.

Responding, a Moniepoint representative attributed its widespread use to accessibility, affordability, and instant transaction confirmation, but admitted that tracing funds becomes difficult when individuals sell their identities or permit third parties to operate their accounts. He disclosed plans to expand the company’s physical branch presence nationwide before 2028 to enhance accountability and customer redress mechanisms.

Stakeholders at the hearing supported the BOFIA amendment but warned against regulatory overlaps. Financial operators urged lawmakers to harmonise any new reporting requirements with existing obligations under the Central Bank of Nigeria to avoid duplication.

Some senators also flagged potential conflicts between the proposed amendments and provisions of the Nigerian Communications Act, recommending a technical review to eliminate inconsistencies.

At the close of the session, the committee resolved to set up a technical team comprising regulatory experts, legal practitioners, and financial stakeholders to refine the proposed legislation.

Senator Abiru stressed that the ultimate goal is to deliver “a conclusive and useful legislation” capable of strengthening Nigeria’s financial ecosystem, boosting consumer protection, and preventing future large-scale investment fraud.

The public hearing comes amid mounting anxiety over digital investment scams, despite repeated EFCC advisories warning Nigerians against high-yield schemes promising unrealistic returns. Lawmakers say the outcome of the probe will shape tougher safeguards to restore public confidence in the country’s financial system.