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Posted By Admin On April 16th, 2025

Nigeria has become a fertile ground target for Ponzi schemes, with millions of unsuspecting investors losing life savings in a cycle of financial deception and unfulfilled promises.

From digital platforms to agriculture-based investments, these fraudulent schemes continue to thrive on the hopes of a quick return on investment, particularly in a country battling with economic challenges.

Here is a look at ten major Ponzi schemes that shook the nation and left behind trails of financial devastation.

In 2016, the infamous Mavrodi Mundial Moneybox, MMM, a Russian company burst into the financial scene with the promise of a 30 percent monthly return. Modeled after a global Ponzi structure, it attracted over three million Nigerians who “provided help” with the hope of “getting help” in return.

DAILY POST recalls that the scheme crashed in December 2016, freezing accounts and leading to losses estimated at over M18 billion.

Shortly after MMM’s crash, Ultimate Cycler took root in Nigeria. Promising a 400 percent return on investment, the platform lured thousands to pay N12,500 in a chain-style operation.

The website shut down abruptly, leaving users stranded without recourse.

Soobn after, Twinkas followed in 2017. The platform promised a 200 percent return. The scheme eventually collapsed as new sign-ups slowed down, leaving many participants unpaid and frustrated.

The same year, D9 Club gained prominence with claims of profits from global sports betting.

With operations spread across countries, its Nigerian victims were left counting their losses after the scheme folded. It was estimated that Nigerians lost over N10 billion to the fraudulent enterprise.

In 2020, MBA Forex Trading and Capital Investment Limited made headlines with its promise of professional forex trading returns.

Thousands of Nigerians {investors} trusted the platform, leading to over N171 billion in investments. The platform eventually shut down without fulfilling payout obligations.

Its CEO, Maxwell Odum was declared wanted by the Economic and Financial Crimes Commission, EFCC, nothing was then heard of the matter.

Famzhi Interbiz Limited came on board in 2021, under the guise of a cooperative. It promised up to 30 percent monthly returns.

The scheme attracted heavy investment until the Securities and Exchange Commission, SEC, deemed its activities illegal, resulting in investor losses amounting to an estimated N30 billion.

The year 2022 saw the fall of ‘Red King’ Chinmark Group, which claimed to invest in hospitality, transportation, and other sectors.

Widely promoted by social media influencers, the company defaulted on payments, resulting in estimated investor losses of over N40 billion.

CEO Mark Chinedu faced public backlash and scrutiny over unfulfilled promises.

Ovaioza Farm Produce Storage Business also collapsed in 2022. The company presented itself as an agricultural investment platform, offering up to 70 percent returns.

Many were attracted by the perceived legitimacy of agribusiness, but it turned out to be another Ponzi scheme.

Losses were estimated at over N3 billion, and its founder was arrested by the Federal Competition and Consumer Protection Commission (FCCPC).

Brisk Capital emerged in 2021 as a tech-driven investment firm. It lured thousands of Nigerians, especially youths, with promises of 30 percent monthly returns.

Its founder, Dominic Ngene, used social media to build trust, but the platform collapsed within months, leaving investors in the dark and resulting in estimated losses of over N2 billion.

Most recently, CBEX (Crypto Bridge Exchange) collapsed in April 2025.

CBEX presented itself as a cutting-edge crypto trading platform utilizing artificial intelligence to generate high returns. It drew in investors with the promise of doubling capital within a short period.

Users soon found themselves unable to withdraw funds, while the platform’s web domains mysteriously vanished. Many victims are currently lamenting losses ranging from N500,000 to over N2 million per person.

The recurring emergence and collapse of Ponzi schemes in Nigeria can be attributed to a mix of factors, including economic hardship, low financial literacy as well as the seductive allure of high returns.

Over the years, the Securities and Exchange Commission, SEC, Nigeria has maintained a strong position against Ponzi schemes and other illegal investment operations that have defrauded millions of Nigerians.

The Commission has repeatedly cautioned Nigerians to avoid investments that promise unrealistic returns, especially those that guarantee fixed high profits within short periods.

According to the SEC, such platforms are not registered under its regulatory framework and often operate outside the legal capital market system.

In response to the surge in illegal financial operations, the SEC has published several public advisories listing blacklisted and unauthorized entities.

Notable names that have made the list in the past include MBA Forex, Chinmark Group, Famzhi Interbiz, and Ovaioza Farm Produce Storage Business.

To curtail the spread of these schemes, the SEC has issued multiple cease-and-desist orders to unregistered operators, while also forwarding several cases to law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution. In many of these cases, the agency has worked hand-in-hand with the EFCC, the Central Bank of Nigeria (CBN), and other institutions to take decisive action.

The SEC’s Director-General, Dr. Emomotimi Agama said the goal of the new legislation is to strengthen the legal framework governing Nigeria’s capital market, better protect investors, and introduce reforms that will promote market integrity, transparency, and sustainable growth.

“So, N10 million is not the entire penalty or the entire money that will be charged or sanctioned to any suspecting or any accused capital market or non-capital market operator. It is just part of the penalties and or the sanctions that will be meted against such persons,” Agama explained.

Few days ago, the Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, cautioned that the era of fraudulent investment schemes and market manipulation is over, as the Securities and Exchange Commission (SEC) will now properly regulate cryptocurrency trading.

Izunaso sad the new law assented to by President Tinubu has introduced regulatory measures aimed at strengthening Nigeria’s financial system, particularly in the cryptocurrency capital market sectors and State government funding.

He warned that promoters and operators of illegal financial schemes face severe penalties, including fines of at least N20 million and imprisonment of up to 10 years or both.

Source: https://dailypost.ng/2025/04/15/cbex-crash-ten-times-nigerians-lost-billions-after-falling-into-hands-of-ponzi-schemes-operators/