CBEX: SEC Identifies Another Potential Ponzi Scheme, Sends Message to Nigerians

• The Nigerian Securities and Exchange Commission (SEC) has raised an alarm about another potential Ponzi scheme
• The SEC alerted Nigerians about the activities of Property World Africa Network (PWAN) or PWAN MAX
• The Commission disclosed that the PWAN’s activities came to the limelight after investors could not withdraw their funds, which raised red flags

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigeria Securities and Exchange Commission (SEC) has alerted Nigerians, warning against Property World Africa Network (PWAN), also known as PWAN MAX.

The SEC described the company’s investment drive and solicitation as illegal and potentially fraudulent.

PWAN MAX remains unregistered

The capital market regulator disclosed in a statement, saying that PWAN and PWAN MAX are unregistered with the commission and lack the legal right to solicit funds from the public or operate in any capacity in the Nigerian capital market.

According to a statement released by the Commission, PWAN and PWAN MAX are not registered with the SEC and therefore lack the legal authority to collect funds from the public or operate in any capacity within the Nigerian capital market.

SEC said:

“The Commission hereby informs the public that PWAN/PWAN MAX are NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.”

The SEC identifies red flags in PWAN activities

According to the statement seen by Legit.ng. SEC said the move followed an intelligence report on the PWAN’s investment offerings, which reportedly promised high returns and have subsequently failed to honour withdrawal requests from investors.

The commission noted that the development bears a resemblance to a Ponzi scheme, which depends on continuous investment inflows from new investors to sustain payouts.

The SEC warned that anyone investing in the scheme does so at their peril, stressing that the company’s operations raise concerns associated with fraudulent investment initiatives.

Investors’ funds frozen

“Investigations have revealed that PWAN’s operations exhibit the typical indicators of a fraudulent Ponzi scheme,” the SEC warned.

According to the regulator, members of the public should verify the registration status of any investment platform before investing.

The SEC said the public can verify via the commission’s website to confirm their authenticity.

Nigerians reel from CBEX collapse

The development comes after several Nigerian investors lost their life savings after CBEX, an unsecured and unregistered digital trading platform, crashed on Monday, April 14, 2025.

A previous Legit.ng report disclosed that the platform became unavailable and inaccessible to users seeking to withdraw their funds on Tuesday, April 15, 2025, leading to the belief that it had crashed.

CBEX promised 100% ROI in 30 days

Before the crash on Monday, April 14, 2025, the platform had prided itself as a high-yield investment firm, promising investors a 100% return on investment within a month.

CBEX only accepted dollar-denominated transactions, meaning users only invested in USD.

The platform assured investors of a 100% return on investment in 30 days, intending to create a secure and transparent platform for transactions.

However, the crash has sparked uncertainty in digital transactions, with investors rethinking their actions due to their losses.

CBEX: Expert explains ways to withdraw

Meanwhile, a cryptocurrency analyst and security expert, Taiwo Owolabi, disclosed that available data shows that funds were moved to a TRX address and that the total volume stolen amounted to $847 million and may increase over time.

CBEX’s biggest losers released

Legit.ng earlier reported that findings have shown that oil and gas investors may have been the hardest hit in the recently collapsed Ponzi platform, CryptoBridge Exchange (CBEX).

Details over the weekend show that investors from the oil and gas industry accounted for over 50% of losses recorded in the Ponzi scheme’s crash.

The platform maintained a strong presence in Lagos, Abuja, and Oyo State, giving investors the impression of a legitimate business concern.

Source: Legit.ng