Senate Probes CBN, SEC Over Failure To Halt CBEX Fraud
The Senate has launched an investigation into the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for failing to halt the operations of CryptoBridge Exchange (CBEX), a fraudulent investment platform that swindled Nigerians of over N1.3 trillion.
The decision followed a motion moved during plenary on Wednesday by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West).
CBEX, which promised investors outrageous returns, collapsed in April 2025, leaving Nigerians with over $1 billion in losses.
Lawmakers expressed dismay that CBEX operated for a long period without any regulatory intervention from the CBN, SEC, Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC).
They said the delay in action by these agencies enabled the Ponzi scheme to thrive by luring victims with referral bonuses, fake testimonials, and celebrity endorsements.
The Senate described the incident as part of a dangerous trend of fraudulent platforms exploiting regulatory gaps and the public’s low financial literacy.
Lawmakers warned that continued regulatory failures could further erode public confidence in the financial system and harm the broader economy.
They linked the rise of Ponzi schemes to high youth unemployment, poverty, and limited access to legitimate investment opportunities.
Senator Mohammed Monguno (Borno North) described Ponzi schemes as a threat to Nigerians’ socio-economic well-being.
“They exploit the vulnerable and gullible, robbing them of their life savings and, in some cases, leading them to early graves,” he said.
Senator Sadiq Umar (Kwara North) stressed the need for constant legislative scrutiny of financial schemes to protect citizens through proper laws and investigations.
Senator Solomon Adeola (Ogun West) questioned how CBEX thrived despite the presence of financial regulators.
“No other country tolerates this level of unregulated activity. This is not the first or second time. We must stop this trend,” he said.
Senator Adamu Aliero (Kebbi Central) added that while Nigerians must avoid get-rich-quick schemes, the failure of regulatory agencies remains inexcusable.
The Senate has now directed its joint committees on Capital Markets; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT and Cybersecurity to hold public investigative hearings.
The committees are expected to sensitise the public, investigate the matter thoroughly, and report back within four weeks.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
