CBEX, opportunity, risk: How greed won again

By Adejayan Gbenga

“Ifa Fani Lapo Ya, ore ma ma mu yo” is a Yoruba proverb that emphasizes the importance of contentment, moderation, and the dangers of greed.

Alas, many Nigerians have brought woes upon themselves, forgetting that a bird in the hand is worth two in the bush.

Many believe that Nigerians, in particular, continue to fall prey to Ponzi schemes due to the harsh economic conditions in the country. However, this is not entirely the case. It’s more about the risks of financial ventures and the consequences of reckless decisions.

From the infamous Mavrodi Mundial Moneybox (MMM), which collapsed in 2016, leaving millions of investors devastated, to the recent collapse of CBEX and other crypto-based platforms, the allure of high returns with little risk continues to attract unsuspecting citizens.

For months, many friends, colleagues, and church members tried to persuade me to join the CBEX digital asset platform and become part of their network.

But for me, it’s better to remain at the status quo than open an account that could lead to regret. Online trading platforms are no different from gambling; it’s a 50/50 game. Just as some people venture into betting and become millionaires, others will regret their actions.

A pastor who warns church members against the dangers of gambling but then invests in a platform like CBEX is not a genuine preacher. There is little difference between the two; the dangers are intertwined.

The Nigerian Impact

The collapse of these platforms may have cost Nigerians an estimated N1.4 trillion. This colossal loss will undoubtedly have dire consequences, including the loss of hope for many investors.

In the coming days, some individuals may even contemplate suicide, having watched their life savings, pensions, and hopes for a secure financial future evaporate due to the crash of CBEX.

The development has left thousands of investors devastated, many of whom claim to have lost life savings, loans, and business funds.

One of the victims, Mr. Akeem Badmus, told WESTERN POST in Dugbe Market, Ibadan, “The crash really hit me badly. I’m a businessman, and I invested my business funds—5 million naira—into CBEX.”

Another victim, Ademola John, at the Mokola roundabout in Ibadan, said, “You know, the person who referred me to the platform assured me that it couldn’t crash and that he would refund me if anything happened. Though it’s painful, I won’t say I regret losing 400 thousand naira because, as a man, you must take risks.”

How to Identify Legit Platforms

There are several crucial questions to consider before joining any trading platform.

The first question is: Is the CBEX digital trading platform registered with the Securities and Exchange Commission (SEC)? The answer is no.

The Director General of the SEC, Dr. Emomotimi Agama, confirmed that CBEX is not registered with the Commission.

“When a scheme is not registered with the SEC, it becomes illegal. Anyone interested in investing in such a scheme must ask, ‘Are you registered with the SEC?’ If not, it is automatically illegal and will not be condoned by the SEC,” Dr. Agama stated.

Minimal Risk, Exceptional Profits?

When you fail to analyze a business opportunity, you are setting yourself up for failure. Every Ponzi scheme promises minimal or no risk, with exceptional profits. This is in stark contrast to legitimate investments, which typically involve high risks and the potential for high returns.

High Pressure

Ponzi schemes often exert significant pressure, especially through referrals. If you fail to refer others, you may be restricted from withdrawing your funds.

Steady Profit?

Legitimate investments or businesses experience fluctuating returns due to market forces, while Ponzi schemes promise constant, unrealistic profits.

Government’s Reaction

The Economic and Financial Crimes Commission (EFCC), through its spokesperson Dele Oyewale, has repeatedly warned Nigerians against falling for Ponzi schemes.

However, he assured that the commission, in collaboration with the International Criminal Police Organisation (INTERPOL), is working on addressing the issue.

“Greed is a bottomless pit,” he said, reminding us of the valuable lessons about the consequences of wanting more than what’s fair.

By learning from the CBEX ordeal, we can make wiser financial decisions and avoid the pitfalls of greed.