EFCC, SEC launch crackdown on Ponzi schemes.
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The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to go after operators of Ponzi schemes across the country.
This commitment was made on Wednesday in response to the recent collapse of the digital assets platform, CBEX.
While the SEC disclosed that it had not yet received any formal complaints concerning CBEX, the EFCC assured that those who invested in the platform would eventually recover their funds.
Appearing on a live Arise TV programme, the Director-General of the SEC, Dr. Emomotimi Agama, promised that the commission would take firm action against the perpetrators.
CBEX, which claimed to leverage artificial intelligence for cryptocurrency trading and promised investors a 100 per cent return within 30 days, abruptly shut down operations on Monday, with losses estimated at N1.3 trillion.
Agama stated during the interview, “As of this moment, we have not received any formal complaint concerning CBEX. If we had, the SEC team would have already taken action to identify and apprehend those involved.
“Nonetheless, we deeply sympathise with the victims, who are Nigerians. We will launch an investigation to trace the perpetrators and ensure they are brought to justice, as the law empowers us to do so.”
He emphasized that the SEC has consistently cautioned Nigerians against investing in schemes that seem too good to be true.
“Ponzi schemes are not a new phenomenon. They are a global issue that dates back to the 20th century with Charles Ponzi, who promised investors a 50 per cent return. Since then, countless individuals have used similar tactics to swindle people out of their hard-earned money,” he explained.
“However, people’s investment decisions must align with the laws of the land. The SEC remains committed to investor education. As part of our efforts, we’ve participated in various interviews and recently launched a podcast, which is a step towards our broader plan of introducing a capital market radio station.”
He added, “Once again, I urge Nigerians looking to invest to conduct proper research. Reach out to the SEC by phone or visit our website to verify whether a company or individual is registered. If you come across any entity that isn’t registered, please notify the SEC promptly.”
The SEC Director-General also disclosed that the Senate recently approved N10 billion for the commission’s market education programme. With the backing of the President, he said the SEC plans to establish additional offices nationwide to better connect with the public.
He urged Nigerians to report any Ponzi schemes they come across so the SEC can take appropriate action.
In response to the CBEX situation, the EFCC assured that investors who put money into the digital trading platform would recover their funds.
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