- Despite warnings from government agencies and financial regulators, Nigerians have continued to be victims of Ponzi schemes, and the latest is CBEX
- Thousands of Nigerians have been shattered as CBEX allegedly duped people of N1.3 trillion after the digital investment platform reportedly crashed
- In this article, TheTalk.NG examines popular Ponzi schemes that have packed up in the last decade and duped Nigerians of millions of naira
CBEX, a digital investment platform, which promised 100% returns to investors within a 30-day time frame, has reportedly crashed, trapping N1.3 trillion of people’s funds and leaving many Nigerians shattered.
CBEX joins an infamous growing list of Ponzi schemes that have all operated using the same modus operandi of offering mouth-watering payouts, paying out at their initial stages before ending in calamitous losses.
Many Nigerians lose millions of their money to Ponzi schemes.
Photo Credit: WeeTracker, Business Day, TikTok/@nickie677Source: TikTok
Ponzi schemes have continued to have a field day in Nigeria, despite repeated warnings from the government’s regulatory and law enforcement agencies.
According to Enact Africa, Ponzi schemes have duped Nigerians of over US$1 billion (over N1 trillion) in the last decade, with the most infamous being MMM, which attracted over three million Nigerian subscribers.
As CBEX investors lick their wounds and explore ways to get back their trapped funds, TheTalk.NG highlights three popular Ponzi schemes that defrauded Nigerians of millions of naira after their crash.
1. Mavrodi Mundial Moneybox (MMM)
In 2016, and ignoring the warning of the Central Bank of Nigeria, thousands of Nigerians embraced the infamous Mavrodi Mundial Moneybox (MMM)’s gospel of quick riches – a 30% returns on investment in 30 days and it ended in a devastating manner.
The platform crashed in December 2016, with its Nigerian investors losing a total of US$50 million (over ₦18 billion).
Many Nigerians lose millions to Ponzi schemes promising quick money.
Photo Credit: ThePointNG, NairametricsSource: UGC
The US’s CNN reported that MMM was the brainchild of a Russian company responsible for one of the world’s largest Ponzi schemes of all time.
2. MBA Forex
One would have thought many Nigerians took a cue from the crashed MMM, but that was not the case as thousands again fell for the MBA Forex Ponzi scheme, which folded in 2021.
The MBA Trading and Capital Investment Limited, run by Maxwell Odum and popularly called MBA FOrex, defrauded Nigerians of N213 billion.
Nigerians lose millions to MBA Forex Ponzi scheme.
Photo Credit: WeeTrackerSource: UGC
The Ponzi scheme promised 15% returns on investment and crashed after initially paying out its early investors.
On December 8, 2021, the Economic and Financial Crimes (EFCC) boss declared MBA Forex’s CEO wanted for an alleged case of conspiracy, obtaining money by false pretence and money laundering to the tune of N213 billion.
3. Chinmark Group
In what was a crafty case of image laundering, using Facebook influencers and social media, and taking advantage of people’s desperation for quick money, Chinmark Group, an investment group, appeared on the scene promising a 3% monthly return on investment, made its way into unsuspecting and greedy people’s hearts and eventually crashed.
The Ponzi scheme founded by Dr Marksman Chinedu Ijiomah left thousands of investors in losses and unable to get back their funds despite promises of refunds. Checks showed the group was founded in 2010.
Chinmark group fails to pay investors their money after promising monthly returns of 3%.
Photo Credit: NairametricsSource: UGC
Dr Marksman was subsequently declared wanted for a series of offences, including computer-related fraud, obtaining money under false pretences, fraudulent diversion and money laundering to the tune of over N13 billion.
Man explains how Ponzi schemes operate
Meanwhile, TheTalk.NG previously reported that a man had given a vivid explanation of how Ponzi schemes convince Nigerians to invest millions.
He said a Ponzi scheme is essentially money doubling. Explaining how it works, he said, once the first person gets their money doubled, they go to announce it to other potential investors.
The man stated that the investor would be surprised that his money would still double again after 30 days. The investor will then invest more money, having been convinced that it is a means for him to double his funds.
Source: TheTalk.NG
