There have been several schemes purportedly geared towards enhancing the financial fortunes of patrons over time. One of the latest which appeared promising was Crypto Bridge Exchange, CBEX, which has gulped over N1 trillion of investors’ funds. It was marketed as a credible digital asset exchange but has now turned to a Ponzi-style scheme, arousing fresh concerns over the lack of strong regulation in the country’s digital finance ecosystem.
Long before the entry of what has become known as Ponzi schemes and fraudulent money making systems, there were precursors where several millions of Naira were lost by investors.
It was not uncommon in years back to confront what was then christened ‘wonder banks’ where quick returns in several folds where promised to investors. Many of those schemes turned out to be phony investments which only existed to swindle unsuspecting individuals.
Given enhanced technology buoyed by the new digital age it is therefore not surprising that fresh impetus has arisen where fraudsters explore the inherent advantages to hoodwink several unwary publics.
Many have become vulnerable, falling victims to these schemes just by prompting a command on handheld devices or computers among others.
Notably, there was the “Umanah Umanah Wonder Bank” which was then a leading Ponzi scheme which promises more than a hundred percent profit on investment on a short run. It was soon discovered to be a fraudulent scheme and it was not long into its existence that the authorities clampdown on the promoter who was arrested, with punitive measures taken against him.
It was only recently that the reality dawned on investors on the CBEX platform that they have lost their deposits.
Just as the drama was unfolding, the Economic and Financial Crimes Commission, EFCC, rolled out names of no fewer than 50 entities it said were either fraudulent or unregistered in the financial sector and not worthy of the public’s patronage. This is coming rather too late for investors. Even at that, it was discovered that CBEX did not make their list, a situation that is apparent the EFCC does not have all the details of these phony schemes run by both Nigerians and their foreign accomplices.
The EFCC, other anti-fraud agencies and financial regulators need to do more to sanitise the loose operating environment that allows the thriving of these fraudulent schemes.
It is not however uncommon to have many argue that the nation’s economic woes are triggering the rush for schemes to survive hard times thereby becoming victims on the long run. On another rung, it is suggested that greed is behind the rabid patronage of such schemes despite experiences of the past.
It is necessary to track the promoters and ensure that they do not escape the wrath of the law, especially that many impoverished Nigerians have been further drained by this collapse.
We hope the authorities would not renege on their promise to get the perpetrators.
Therefore, sanitising and regulating the online financial space has become more compelling given the nuisance and pain the public go through in the hands of dubious financial schemes.
