A staggering ₦1.3 trillion has been lost to unregulated investment platforms including CBEX, Chinmark Group, and agricultural-based Ponzi schemes, according to a revealing advisory issued by the Nigerian Financial Intelligence Unit (NFIU) on Wednesday.
In its assessment of the country’s expanding fraud landscape, the NFIU detailed how fraudulent schemes such as Crypto Bridge Exchange (CBEX) exploited digital platforms, regulatory loopholes, and public trust to orchestrate elaborate scams, robbing thousands of Nigerians—many of whom were drawn in by social media marketing and unrealistic return promises.
CBEX, which operated under the corporate name ST Technologies International Limited, never received registration or authorization from the Securities and Exchange Commission (SEC) to function as a Digital Assets Exchange (DAX) or solicit public investment in any form.
“CBEX made an outrageous promise of a 100 per cent return on investment (ROI) in just 30 days. It used three specific deposit wallet addresses identified as receiving funds from Nigerian victims. Illicit proceeds were funnelled into intermediary wallets used to obscure the source of funds. The obfuscation technique identified is using bridges to move the funds from the Tron blockchain to the Ethereum blockchain, using the ‘Bridgers’ service,” the NFIU disclosed.
The report clarified that a crypto bridge is a technological service enabling users to transfer digital assets across incompatible blockchain networks. This functionality allowed CBEX to mask the origin and destination of stolen funds effectively, bypassing traditional financial oversight.
Chinmark Group, meanwhile, positioned itself as a multi-sectoral enterprise, claiming interests in real estate, logistics, agriculture, hospitality, and healthcare. The company cultivated public trust by promoting values such as religious morality, philanthropy, and youth empowerment.
“Chinmark built investor trust through Instagram, Facebook and endorsements by social influencers. It promoted fixed investment packages with a monthly ROI of three to four per cent. Investment amounts ranged from N100,000 to N10 million or more,” the advisory noted.
The NFIU added, “It accepted Bitcoin (BTC) and USDT (Tether), especially from Nigerians in the Diaspora, used crypto OTC agents to convert digital assets to naira, and promised international investors seamless entry and exit using crypto channels.”
Though Chinmark initially made regular ROI payments, delays began surfacing by late 2021, prompting concern among investors. The company cited “cash flow issues” as the reason for the interruptions. That panic led to a wave of petitions filed by victim groups across various law enforcement agencies.
“Thousands of investors lost money, some reports suggest over N10 billion in total. Many investors formed victim groups and filed petitions with Law Enforcement Agencies (LEAS),” the NFIU confirmed.
Regulatory Urgency: A Call for Unified Fraud Response
In the wake of these revelations, the NFIU has urged Nigerian regulatory agencies to develop a centralized fraud alert portal to track and warn against suspicious investment schemes. The advisory underscores the pressing need for cohesive inter-agency collaboration in tackling emerging threats within Nigeria’s increasingly digital investment ecosystem.
