✓ The CBEX SCAM: Red flags and Lessons
Barely a few days after the Director General of the Securities and Exchange Commission (SEC), Mr. Emomotimi Agama, revealed in an interview on Arise TV that the new Investment and Securities Act (ISA 2025), recently signed by President Bola Ahmed Tinubu, empowers the commission to arrest and prosecute promoters of Ponzi schemes in Nigeria, with at least 10 years' imprisonment, the month of April brought pains and tears dripping from the eyes to the cheeks of people who invested in CBEX, organized under ST Technologies International Limited, which was said to be registered with the Corporate Affairs Commission (CAC) and was even listed with the Economic and Financial Crimes Commission's (EFCC) Special Control Unit against money laundering.
This well-coordinated scam became well-known after its crash, as it was revealed by the victims that they were lured into investing in the scheme with high returns after 30 days of investing, not knowing it was a bait box specially designed to swiftly swindle investors off their hard-earned funds. The organizers and promoters of this well-organized Ponzi scheme went to great lengths to advertise using recruited promoters, the media, and also organized charity events to build trust with the public (targeted audience).
One might ask; how did a scheme that promoted referrals with promises of incentives didn't spread so easily as expected and managed to evade detection by the regulatory body incharge (SEC), until its crash? Is this driven by the normal human nature of hiding means of deriving success or financial gains to outdo others?
The Securities and Exchange Commission via their official website on April 17th made a publication after being tackled by netizens, as the ‘crypto’ market watchdog. They debunked the accusation revealing that the platform wasn't registered with them.
Some of the statement reads; "The attention of the Securities and Exchange Commission (“The Commission”) has been drawn to recent media reports/publications on the activities of CBEX (Crypto Bridge Exchange). CBEX, which also operates under the corporate identity of ST Technologies International Ltd, Smart Treasure/Super Technology, has held itself out as a digital asset trading platform, offering high returns to investors in Nigeria.The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigeria.."
At the early stage, when the crash of the scheme was still a rumor on X (formerly Twitter), I surfed the internet and found out that the scheme was promoted by some media outlets. This brings us to the problem in advertising. The media have a big role to play in ensuring they run proper background checks on any product or service before bringing it to the public, as the media serves as an authority or credible source of information to the public.
This would curb exaggerated claims and manipulation. It is expected that the media should have done their findings by checking if the trading platform is registered with the Securities and Exchange Commission (SEC) and other regulatory bodies, as the case may be, before airing or publishing such promotion, which is capable of controlling public decision-making by appealing to their conscience or emotion.
The media can also adopt ending their promotional publications or audio-visual ads with a cautionary notes to inform potential investors that they should be prepared to take on any risks, including volatility or potential loss of any funds.
All registered/legit crypto trading platform, do warn the investors to invest money they can be willing to loss without having much issue. Also they stipulate that crypto is volatile. This is just like shares/stocks, but crypto volatility is higher. Even cigarettes and betting platforms do add cautionary notes but I didn't see that in those media promotion.
Further search online led me to Quora, a question-and-answer platform, where people have been debating the legality of the platform before 2025. I guess people do underestimate the power and usefulness of experience-sharing platforms or question-and-answer platforms like Quora and Nairaland due to their reliance on user-generated content (UGC) or seen as a form of citizen journalism.
Additionally, a publication by Yagyanseni Sahu on Business Turn Up Asia on February 1st, 2024, revealed that the original platform run by the government of Beijing, known as "The China Beijing Equity Exchange (CBEX)," stated clearly that they have no connection with any other company with a similar or same name, "CBEX Group," that claimed to be dealing with cryptocurrency to avoid any form of confusion that might arise due to the shared name."
I guess some joined or invested knowing fully well it was a Ponzi scheme, using trading as a camouflage. Below are some red flags that verifies CBEX was a Ponzi scheme, not a legitimate trading platform:
• Crypto involves buying and selling popular cryptocurrencies on a reputable platform registered with the Security and Exchange Commission (SEC) and other Nigerian regulatory bodies. While, CBEX faked investment activities, relying on recruiting new investors to pay old ones, just like MMM did in 2016.
• Crypto prices are volatile, based on market demand and supply, carrying risks and uncertain returns. However, CBEX promised fixed high returns after 30 days.
In summary, this incident shows the importance of due diligence. As we await the EFCC's investigation report, in collaboration with INTERPOL and FBI, it is very important for people to learn from this experience. Greed and a lack of proper research led many to invest without ensuring the platform's legitimacy and registration with regulatory bodies like SEC.
✓ NBC Bans Eedris AbdulKareem's Protest Song
On April 10th, 2025, news reports on Nigerian dailies, revealed that The National Broadcasting Commission (NBC) directed Nigerian radio and TV stations to stop airing Eedris Abdulkareem's song "Tell Your Papa", citing its "objectionable nature". The song urges President Tinubu's son to tell his father to address Nigeria's economic and security crises.
The song which was released in Sunday, 6th April 2025, gained more public attention following the ban, with many netizens posting and sharing it across all social media platforms.
The ban on Idris Abdul Kareem's song "Tell Your Papa" left me speechless, because when Jesus came to the earth to fulfill his father's work, he preached about his father. We were also taught to pray to God through him (Jesus).
If we can pray to God with our struggles and frustrations, why silence a song that speaks about the public pains and struggles. I see nothing bad in a president's son supporting a government headed by his dad. I will do same, if am comfortable and proud of his achievements in government.
However, as a public figure, he should be open to criticism, it is inevitable. We are in a democratic government, and constructive criticism should be allowed. Can a parent beat a child and then not let them cry? Similarly, we are being beaten and punished for expressing our pains through songs and other means of communication.
To me, the song "Tell Your Papa" was a way to express the pain and suffering Nigerians are facing. It's like a prayer, a heartfelt cry for help and change, similar to how prayer warriors intercede through Jesus.
Egungwu Chukwuka Benjamin is a freelance journalist, who writes in from Lagos.
NB: This article was originally published in The Champion Newspaper on 30th April, 2025.
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