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The government’s CBEX hypocrisy

FOLLOWING the crash of the cryptocurrency scam called CBEX, the Nigerian establishment has been huffing and puffing as usual. The House of Representatives extended “heartfelt empathy” as Nigerians lost an estimated exceed ₦1.3 trillion. The platform, unregistered with the Securities and Exchange Commission (SEC), stole the name CBEX even though it has no affiliation with the legitimate China Beijing Equity Exchange, an equity trading institution that has now just disowned the Nigerian CBEX. The House urged the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to track the perpetrators, safeguard investors, and recover withheld funds where possible, saying: “We urge these agencies to sustain swift and effective action in identifying, apprehending, and prosecuting the masterminds of this massive financial crime”. Na so!

According to Taiwo Owolabi, a cryptocurrency expert and security analyst, stolen funds had been traced to a TRX address (yourself:TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf). He noted that the total amount lost stood at $847 million and could rise further. And the EFCC has predictably joined the fray, declaring with a bold face that the CBEX “investors” will get their money back. Hear its spokesperson, Dele Oyewale: “Our dragnet is wide, our intelligence is very effective, and we were tracking that digital trading platform. We were tracking it, and we profiled several things concerning the platform. You will recall that March 11 this year, the executive chairman of the EFCC, Mr. Ola Olukoyede, had called to instruct us to alert Nigerians. That shows that we are proactive.” What a joke!

If you believe the gibberish that the National Assembly, EFCC, SEC and others have been uttering since the CBEX saga broke out, you can believe anything. It is quite true that Nigerians are no strangers to Ponzi schemes, from MMM to Twinkas, Ultimate Cycler, Zar Fund, Givers Forum, iCharity, Get Help Worldwide, etc. In 2022, the Nigeria Deposit Insurance Corporation (NDIC) disclosed that Nigerians had lost N911.45 billion to Ponzi and related fraudulent activities in the last 23 years, with MMM alone accounting for N18 billion of that figure. Yet the government folded its arms as a new gang of scammers ripped Nigerians off through CBEX. If anyone can point to a screaming, anti-CBEX headline by the EFCC, the same joint that is now playing a silly game of holiness after incredible damage has already been done to Nigerians, during the CBEX pandemic, I will apologise. The truth is that many people, including members of the security agencies, media, business community, etc, invested huge sums in CBEX and made stupendous money before the platform crashed. If the criminals behind the scheme had not moved Nigerians’ money into a secret wallet and vanished, there would have been absolutely no outrage against CBEX. If CBEX were to release the names of the people on its platform, many of the commentators harassing the public space at the moment would shut their months. They invested heavily in CBEX; forget about their hypocritical noise.

The EFCC, which was quoted as saying that it could not go after CBEX because of the online nature of its operations, must take Nigerians for fools. Where do Yahoo Boys operate? Mars? According to sources, the CBEX scammers displayed a logo on their platform conveying the EFCC’s supposed clearance, yet EFCC kept mute. CBEX had offices across the country but the commission never raided those offices. Indeed, the CBEX scammers also utilised the airwaves, yet they were never brought in for questioning. CBEX launched its fraud in Nigeria in July 2024, promising investors 100 percent profit in 30 days, encouraging them to refer others and gain bonuses, and Nigerians bombarded the platform without anyone telling them of the potential risks. The government only found its voice after CBEX crashed!

On a personal level, I encountered many people who sought to persuade me that CBEX was a legitimate business validated by governments around the world. I, however, rejected the offers for religious reasons. Years ago, I had invested N20,000 of my N32,500 salary in something called e-gold, which someone I was very acquainted with promised was absolutely legit. Alas, I never saw my money again. And so when MMM came, I was bound to demur. During the MMM case, I recall my wife and I being treated to a sumptuous meal by a family member in Lagos, with the host asking if we wanted more. In my mind, I kept wondering why we were being treated to such a feast, but I later learnt that our host had actually just made a hefty sum from MMM!!

If you believe that the government officials ranting over CBEX did not know about the scheme, then you can believe anything. CBEX was literally in the air everyone breathed; people bought land, completed building projects, and bought cars and phones. Shop owners expanded their business through CBEX and many market women signed on in groups. Suddenly, everyone became a crypto trader: there was no mention of religion because it was all about money and plenty of it. And when it comes to money, Nigerians will do anything. They will invest in any business even if the administrator is the devil: they will tell you he is their distant relative.

In a decent country, the government takes adequate care of the citizenry, thus eliminating the likelihood of citizens being massively defrauded through Ponzi schemes. The CBEX criminals would not have survived a month in the United States. In Nigeria, sadly, citizens are on their own. We saw that clearly during the COVID-19 crisis when even foreign students displayed the super packs of food, money and other essentials that they got, whereas in Nigeria entire streets were asked to share a bag of rice. In that situation, citizens will easily fall prey to Ponzi schemes, particularly given that the governance edifice itself operates like a Ponzi scheme, promising heaven and earth while confining the country to hell. That being the case, it amounts to hypocrisy for the government to be lecturing Nigerians about safe/unsafe investment. Here is a country where the three arms of government are CBEX joints. Is this not the same country where a presidential aspirant became Senate President without obtaining the senatorial nomination form? Is that not CBEX, political yahoo or MMM? And when judges sell justice to the highest bidder, what’s the difference between that and CBEX, which uses Abu’s money to entertain Abu as a guest?

On a light note, if your neighbour wants “to call police for you” at this moment, try and settle the matter with him/her and don’t use stronghead. This is because many police (wo)men lost money through CBEX and if you try any nonsense, they will use your face to draw Nigeria’s map! If you think DPO will help you, well, like the secretary to the Honourable Minister says in that great Nigerian movie, The Meeting, OYO is your case! You are on your own. You know how much DPO sef loss? My people, na joke o!

On a serious note: no legitimate business will give you double/triple profits in 30 days. But many of you are still going to invest in the next scam anyway. Mad o!

Abiodun Awolaja