The Senate has initiated a comprehensive investigation into the collapse of Crypto Bridge Exchange (CBEX), declaring the situation a national emergency.
At the plenary session on Wednesday, the senators expressed grave concerns about the devastating impact of the Ponzi scheme on Nigerians. The collapse of CBEX is being described as one of the most significant financial scams in the nation's history, leading to widespread depression, suicides, and a decline in public confidence in financial institutions.
During the session, lawmakers pointed to a failure of regulatory oversight as a primary contributor to the proliferation of such fraudulent schemes. The Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Economic and Financial Crimes Commission (EFCC) were all mentioned as regulatory bodies that need to be held accountable for what senators termed a "regulatory failure."
In response to the crisis, the Senate has established a multi-committee to conduct a thorough investigation into the matter. The probe will not be limited to CBEX but will also scrutinize the activities of other unlicensed financial technology companies operating outside the regulatory framework. The committee is expected to conduct public hearings and submit a detailed report with recommendations for legal and regulatory reforms within four weeks.
Several senators passionately argued for the enactment of stricter laws to deter and punish the perpetrators of such large-scale financial crimes. In a personal and revealing moment, the Senate President, Godswill Akpabio, disclosed that he had also been a victim of a Ponzi scheme in the 1990s.
CBEX was a purported investment scheme promoted by persons who allegedly defrauded Nigerians of over N1.3 trillion.
