Reps Demand Crackdown On Masterminds Of ₦1.3tr CBEX Crypto Scam

The House of Representatives on Thursday expressed deep concern over reports of the crash of a fraudulent cryptocurrency investment scheme – CBEX, calling for an urgent crackdown by all security agencies on the perpetrators of the economic crime.

LEADERSHIP recalls that the scheme has trapped over ₦1.3 trillion belonging to thousands of Nigerians.

Chairman, House Committee on Media and Public Affairs, Akin Rotimi, in a statement expressed the House’s sympathy to Nigerians experiencing distress due to the complex scam.

Rotimi emphasised that the Investment and Securities Act (ISA), 2025, which was approved by the National Assembly and enacted into law has made Ponzi schemes and similar frauds illegal, imposing harsher penalties, including potential imprisonment for up to 10 years.

According to him, “Preliminary findings indicate that the platform, which is not registered with the Securities and Exchange Commission (SEC), deceptively adopted the name “CBEX”.

He highlighted that CBEX may not be affiliated with the legitimate China Beijing Equity Exchange.

This Chinese equity trading institution has disavowed any involvement in digital asset trading or operations in Nigeria.

“This large-scale fraudulent scheme, which promised unrealistic returns and preyed on public trust, highlights the growing risks posed by unregulated digital investment platforms.

“The House notes that the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force have already commenced coordinated investigations, working with Interpol to track the perpetrators, safeguard investors, and recover withheld funds where possible.

“We urge these agencies to sustain swift and effective action in identifying, apprehending, and prosecuting the masterminds behind this massive financial crime.”

The House also underscores the importance of the recently enacted Investment and Securities Act (ISA), 2025, signed into law by President Bola Tinubu.

“This landmark legislation – resulting from sustained legislative efforts across the 8th, 9th, and 10th Assemblies – strengthens the SEC’s enforcement powers, criminalises Ponzi schemes and related frauds, and introduces stricter penalties, including up to ten years’ imprisonment.

“Through these reforms, the investor protection responsibility of the SEC has been enhanced, reinforcing its mandate to shield Nigerians from fraudulent investment activities,” Rotimi noted.

The Chairman of the House Committee on Capital Markets and Institutions, Solomon Bob, said, “We must continue to confront financial fraud with the full weight of the law. But beyond enforcement, we must invest in public awareness. Financial literacy is not optional; it is essential in building a resilient, inclusive economy. Fraudsters thrive where ignorance prevails.”

Bob also advised, “Nigerians to exercise utmost caution and verify all investment opportunities with the SEC and other regulators. Citizens must remain vigilant to the hallmarks of fraud, especially promises of high returns with little or no risk.

“Furthermore, public figures, celebrities, and influencers are reminded of their civic and legal duties. Under the new ISA, promoting unregistered investment schemes could attract liability for aiding financial misrepresentation and consumer deception.

“The House calls on schools, faith-based organisations, media outlets, and civil society groups to support a national effort to promote financial education and protect the public from predatory schemes.

“In line with the 10th Assembly’s Legislative Agenda (2023-2027), particularly Agenda 4 on Economic Growth and Development, the House reaffirms its commitment to securing the financial welfare of Nigerians.

“We will continue to support sound legislation, strengthen regulatory frameworks, and promote capital markets that are safe, transparent, and inclusive.”