Senate probes Ponzi schemes in Nigeria
THE Senate has begun a probe into Ponzi schemes in Nigeria, with particular reference to the recent Crypto Bullion Exchange, CBEX, incident. It said the holistic investigation into their activities had become imperative, following the rapid proliferation and alarming rise of unregulated and fraudulent investment schemes, commonly known as Ponzi or pyramid schemes, such as MMM Nigeria in 2016; MBA Forex in 2020, to mention a few, which have repeatedly defrauded Nigerians, causing severe financial hardship and, in some cases, depression, family breakdowns, and even suicide. Consequently, the Senate mandated its joint committees to conduct a comprehensive investigative and public hearings on the operations of Ponzi schemes in the six geo-political zones of the country to urgently educate and sensitise Nigerians on the need for awareness and report back in four weeks. The committees are banking, insurance and other financial institutions; capital market; anti-corruption and financial ...