In response to the collapse of a fraudulent digital investment scheme known as CBEX, Nigeria’s House of Representatives has warned celebrities, influencers, and public figures against promoting unregistered investment platforms.
This comes amid growing outrage following the scam, which has reportedly trapped the funds of thousands of Nigerians with an estimated financial loss of over N1.3 trillion.
Rep. Akin Rotimi Jr., the House of Representatives’ spokesperson, emphasized in a public statement that the newly enacted Investments and Securities Act (ISA), 2025, holds individuals legally accountable if they are found promoting or aiding unregistered financial schemes.
The Act empowers regulators like the Securities and Exchange Commission (SEC) with stronger enforcement capabilities while imposing tougher penalties, including up to ten years’ imprisonment, for violations involving Ponzi schemes and fraudulent investment activities.
CBEX Collapse Raises Alarm
CBEX, a digital asset trading platform operated by foreign nationals and Nigerian collaborators, collapsed in early April 2025. On April 9, users encountered restricted withdrawals, but many still believed the issues were temporary. By the following week, investor account balances had disappeared entirely.
In a misleading attempt to prolong operations, CBEX demanded additional verification deposits from its users—$100 for those with less than $1,000 in their accounts and $200 for balances above that threshold. This tactic only deepened the losses, particularly as some individuals continued to invest, hoping the technical issues would be resolved.
As previously reported by THE NEWS CHRONICLES, CBEX lured investors with promises of 100% returns within 30 days through online trading. With no formal registration under the SEC, the scheme operated illegally, exploiting a gap in public financial awareness and regulatory enforcement.
Government Action Underway
Reacting to the debacle, Nigeria’s SEC reiterated that any investment platform not officially registered with the commission is illegal. The Economic and Financial Crimes Commission (EFCC) has also pledged to collaborate with Interpol and other international bodies to trace the perpetrators, safeguard remaining assets, and recover lost funds where possible.
The House stressed that while enforcement is critical, boosting public awareness is equally vital to preventing similar scams. Rep. Solomon T. Bob, Chairman of the House Committee on Capital Markets and Institutions, called for collective efforts across all sectors—including schools, religious institutions, and media organizations—to educate Nigerians on identifying and avoiding fraudulent investment schemes.
Responsibilities of Public Figures
The lawmakers cautioned public influencers and celebrities, warning that the ISA now makes them liable if they promote platforms that mislead or defraud consumers. The House noted that public figures have a civic responsibility to scrutinize investment opportunities before endorsing them, adding that their influence can easily sway public opinion and contribute to widespread financial damage.
The House warned that “High returns with minimal risks should always raise a red flag. “ It urged Nigerians to verify all investment options through licensed regulators before committing funds.
The situation has sparked renewed calls for a national campaign on financial literacy, particularly targeting digital investment trends. With scams like CBEX exploiting economic hardship and low financial education levels, regulators and lawmakers are prioritizing initiatives to build an informed and resilient population of investors.
What’s Next?
Investigations into CBEX’s operations are ongoing, with Nigerian authorities working alongside international agencies to pursue justice and possibly recover investor funds. As more digital scams emerge in the country’s growing fintech space, the collapse of CBEX serves as a sobering reminder of the need for vigilance, regulation, and education in financial decision-making.
