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6 hours ago
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- A Nigerian antheral shared insights into the workings of Ponzi schemes that support surfacing and failing successful the Nigerian fiscal space
- The man's station is coming aft Cbex reportedly failed and trapped wealth invested successful it by unsuspecting members of the public
- He said Ponzi schemes often question to favour the aboriginal investors who past enactment successful much wealth retired of greed, lone to observe they person been scammed
A Nigerian antheral has shared his knowing of however Ponzi schemes operate and however they person people.
The man, Brian Jonah Dennis, published a portion connected Facebook, narrating however Ponzi schemes scam unsuspecting members of the public.
Source: UGC
Brian said the archetypal happening Ponzi's organisers bash is support a definite amount, similar N10 million, which they usage to wage archetypal investors.
How Ponzi schemes operate
He said a Ponzi strategy is fundamentally money doubling. Once the archetypal idiosyncratic gets their wealth doubled, they spell to denote it to different imaginable investors.
He wrote:
"Ponzi is truly simple. Keep N10m arsenic your starting fund extracurricular of your website. Promise to springiness radical 100% of their wealth successful 1 period connected your website. All you request is 1 gullible idiosyncratic to register. He is gullible but he's not stupid. So he'll registry with precise tiny wealth helium won't miss similar N10k. In 30 days, his 10k is present N20k. Give him 10k from your 10 cardinal capital. He withdraws it and successful his caput helium is lucky. So what does helium do? He is gullible but he's not anserine arsenic I said truthful helium keeps his archetypal N10k and reinvests the nett helium made conscionable to spot whether the level is truly paying oregon helium was conscionable lucky."Brian explained that the capitalist would beryllium amazed that his wealth would inactive treble again aft 30 days.
The capitalist volition past put much money, having been convinced that it is simply a means for him to treble his money.
Source: Facebook
How Ponzi schemes negociate to person investors
The organisers of the Ponzi strategy past came up with further bait to pull much people. They committedness the archetypal investors referral bonuses truthful that they volition denote it much to people.
He explained:
"30 days aboriginal his wealth has doubled. He cannot judge his eyes. This clip helium goes higher to 50k and aft 30 days you springiness him N100k. You inactive person excess liquidity. No fear. Meanwhile helium has discovered an infinite wealth glitch and puts successful 200k. This is wherever you archer him that helium stands to marque 10% from referrals' deposit. He goes to facebook to station astir a caller update that has been paying him. He shows screenshots of his deposits and withdrawals. He shows household members and colleagues. They each commencement with tiny funds conscionable to trial but you person capable liquidity near to screen their withdrawals without immoderate headache."According to Brian, Ponzi operators close their websites and halt responding aft they person gathered capable wealth from truthful galore people.
He said it is deliberately planned successful specified a mode that it volition beryllium hard for greedy radical to ignore.
His words:
"After their archetypal period withdrawals, they truly corroborate that what the archetypal feline told them was existent and that the level is genuinely reliable. They person doubled their wealth and solved pressing household and concern issues. Why halt there? It's clip to alteration their car, clip to renew their rent, clip to wage schoolhouse fees for the kids. All they person to bash is fastener wealth for 30 days and get treble of it. The ones that person savings bare it, the ones that don't person volition spell borrowing from friends. Word keeps spreading and the deposits are pouring in. As clip goes on, your archetypal N10m has depleted but your wallet has implicit 500 cardinal from radical waiting for their 30 days to implicit truthful they tin spell and ball. That's erstwhile you crook disconnected the website and determination connected with your beingness and recently sick gotten wealth."Securities and Exchange Commission warns against Ponzis
Meanwhile, Legit.ng reached retired to the Nigerian Securities and Exchange Commission (SEC), and it is said it is amerciable to run concern platforms that are not registered.
Efe Ebelo, caput of outer relations astatine SEC, told Legit.ng successful a text:
"The Securities and Exchange Commission (SEC) has again emphasized that immoderate level not registered with the SEC is amerciable and truthful warns Nigerians against patronizing unregistered platforms."Quoting Dr. Emomotimi Agama, who is the Director-General of the SEC, Ebelo said the Investment Securities Act 2025 established rules for the cognition of specified platforms.
The substance reads:
"Agama said the Act has established wide rules and regulations for integer plus platforms, including registration requirements to beforehand transparency and trust. This, helium said, allows the SEC to ace down connected illicit activities, specified arsenic Ponzi schemes, pump and dump tokens, and unregistered exchanges, creating a safer situation for investors."Preist reacts to clang of Cbex
Earlier, Legit.ng reported that a Nigerian Catholic clergyman has shared his observation astir the alleged clang of Cbex, a integer assets trending platform.
Reverend Father Kelvin Ugwu, a Nigerian clergyman who is connected a ngo to the Gambia, said radical bash not privation to beryllium told the truth.
His comments travel arsenic radical are alleging connected societal media that Cbex had crashed and that investors' funds are trapped.
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Source: Legit.ng
