The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to Nigerians, advising them to curb their excessive desire for quick financial gains, which often leads to falling victim to Ponzi schemes.
The caution came in the form of a brief post on the EFCC’s official 𝕏 (formerly Twitter) account on Sunday, urging the public to remain vigilant.
“Love money too much, and Ponzi schemes will love you …..as their next target….be guided, the Eagle loves you all,” the post read.
Naija News reports that the warning comes in the wake of the EFCC’s ongoing investigation into the alleged fraudulent activities of the digital investment platform, CryptoBank Exchange (CBEX).
The platform reportedly collapsed on April 14, leading to the loss of billions of naira from Nigerian investors.
Several videos surfaced online showing distressed Nigerians, who claimed to have lost their investments in the CBEX scheme. In response to these developments, the EFCC declared eight individuals wanted in connection with the alleged fraud involving the platform.
The EFCC’s move to apprehend the suspects gained legal backing after the Federal High Court in Abuja granted the commission’s request to arrest and detain those accused of promoting the fraudulent CBEX scheme.
Justice Emeka Nwite issued the order following submissions by EFCC counsel, Fadila Yusuf, who argued that the detention of the promoters was necessary to aid ongoing investigations.
The EFCC had revealed that although ST Technologies, which operated the CBEX platform, was registered with the Corporate Affairs Commission, it was not authorised by the Securities and Exchange Commission (SEC) to engage in investment activities. This lack of regulatory approval raised concerns about the legitimacy of the platform.
The EFCC’s investigation into the matter uncovered that the individuals involved in the scheme had vacated their last known addresses in Lagos and Ogun states.
The commission further argued that arrest warrants were necessary to add the suspects to a red watchlist, ensuring they could be apprehended and face charges.
“The investigation has established a prima facie case of an investment scam, and granting this application is in the interest of justice,” the EFCC stated.
In an interview with Channels Television’s The Morning Brief on April 16, EFCC spokesperson, Dele Oyewale, also advised Nigerians against investing in schemes that promise unrealistic returns.
He cautioned that legitimate businesses follow legal frameworks and provide transparent profit declarations, either quarterly or annually. He explained, “We know that for every business concern, you declare your profit either quarterly, annually, or bi-annually, but if somebody says, ‘Bring your money; I’m going to give you a return in 30 days,’ you know that is not realistic; it’s just not pragmatic.”
Oyewale further warned against promises of returns that seem too good to be true, saying, “If somebody says, ‘If you bring your money, we’re going to give you a 100% return on investment,’ that is not possible.”
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