The Nigerian Senate has directed a comprehensive public hearing into the Crypto Bullion Exchange (CBEX) fraud and similar Ponzi schemes, highlighting concerns about their devastating economic and psychological impacts on victims.

During Wednesday’s plenary session, senators unanimously approved a motion jointly sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East), Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, and Senator Osita Bonaventure Izunaso (Imo West), demanding thorough investigations.

The CBEX scam alone resulted in substantial financial losses for thousands of Nigerians, reportedly surpassing ₦1.3 trillion. Senator Abiru emphasized the government’s responsibility to safeguard citizens’ economic well-being and financial security by protecting them from fraudulent and predatory financial practices.

He expressed deep concern over the continuous emergence of fraudulent investment schemes, referring to past scams such as MMM Nigeria in 2016, MBA Forex in 2020, and most recently CBEX, all of which attracted investors through unrealistic promises of high returns.

Lawmakers described the aftermath of the CBEX collapse as catastrophic, citing severe psychological trauma, breakdown of families, and instances of suicide among victims.

Senators were also alarmed that CBEX operated openly for months without significant oversight or intervention from relevant regulatory bodies, including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and Economic and Financial Crimes Commission (EFCC).

The Senate called for immediate institutional accountability and emphasized the need to strengthen measures protecting citizens involved in financial investments.

A joint committee responsible for the inquiry is expected to hold public hearings soon and report their findings within one month.

Source: Arise News