The Nigerian Financial Intelligence Unit (NFIU) has raised a red flag over the alarming rise in fraudulent investment schemes operating under the guise of legitimate businesses, warning Nigerians at home and abroad to tread carefully.
At the center of this growing concern is the now-notorious Chinmark Group, which, according to the NFIU, ran a massive Ponzi scheme masked as a multi-sector conglomerate.
In its latest advisory, the financial watchdog revealed that Chinmark claimed to operate across various sectors—real estate, agriculture, logistics (under Chinmark Haulage), hospitality, and healthcare (through Chinmark Medical). However, its real operations, the NFIU said, were far from transparent.
“The company leveraged religious sentiments, youth empowerment slogans, and charitable works to build trust among unsuspecting investors,” the NFIU stated.
It added that Chinmark used aggressive social media marketing campaigns—particularly on Instagram and Facebook—and enlisted popular influencers to lure the public into fixed investment packages promising 3 to 4 per cent monthly returns.
Initially, returns were paid on schedule, creating the illusion of legitimacy. This success led to reinvestments and referrals—classic Ponzi mechanics.
Between 2022 and 2025, investments poured in, ranging from N100,000 to over N10 million. The company reportedly received payments in Bitcoin and USDT (Tether), especially from Nigerians in the diaspora. The crypto funds were then converted to naira using over-the-counter agents, creating a façade of seamless investment entry and exit points.
Chinmark insisted the investments were channeled into “asset-backed” operations like haulage and real estate. To back this claim, it frequently posted images of trucks, buildings, and medical centers. However, most of these assets could not be independently verified.
By late 2021, the flow of return payments began to stall. Investors were told it was due to “cash flow issues.” That explanation didn’t hold for long.
“Further investigation showed there were no real haulage contracts, and money from new investors was used to pay old ones,” the NFIU revealed.
The fallout has been devastating. Over N10 billion in losses have been reported, with thousands of investors affected. Many victims have formed support groups and submitted petitions to law enforcement agencies seeking justice.
Critically, the agency noted that Chinmark was never licensed by the Securities and Exchange Commission (SEC) to manage investment funds, nor was it registered with the Central Bank of Nigeria (CBN) to accept deposits.
“It operated in a regulatory vacuum, using spiritual rhetoric and cryptocurrency tools to avoid scrutiny,” the NFIU said.
Beyond Chinmark, the NFIU flagged an increasing number of tech-driven investment frauds that use digital assets to deceive the public. These schemes are becoming more sophisticated, often hiding under trendy branding and false promises of quick wealth.
“Most of these operations prey on those facing economic hardship and uncertainty, exploiting hope with urgency,” the advisory noted.
The agency emphasized that many of these schemes now use made-up digital tokens or claim to run blockchain projects, AI-powered bots, or crypto mining ventures to attract investors. But the promised high returns often mask typical Ponzi structures where new investors’ money is used to pay earlier ones.
Multi-level marketing tactics are also common, with platforms offering bonuses for recruiting others. This structure feeds on continuous new sign-ups and creates dependency. In several cases, funds are concealed using privacy coins or crypto-mixing services, making them difficult to trace.
The NFIU expressed concern that these platforms rarely register with key regulators like the SEC, CBN, or NAICOM. Some even display fake certifications or make false claims of endorsements.
“These fraudsters bombard targets with technical jargon such as ‘quantum blockchain’ and ‘machine learning trading signals’ to appear legitimate,” the agency explained.
A recent example cited was CBEX, which claimed to operate with advanced artificial intelligence trading tools. By April 2025, the platform had restricted withdrawals, citing a “security breach,” and demanded “verification fees” before releasing funds—a common tactic in scam operations.
The NFIU outlined red flags that investors should watch out for include promises of fixed, high returns such as “5% daily for life”; refusal to register with regulatory bodies.
In addition, the agency said, use of obscure digital tokens with no real-world use, operation primarily on platforms like WhatsApp, Telegram, and Instagram are part of the red flags to watch out for.
Furthermore, “censorship or removal of dissenting voices in investment groups, pressure tactics such as limited-time offers and countdowns, withdrawal delays with vague excuses,” he said.
Moreso, several ongoing platforms have also come under NFIU scrutiny.
eWealth Connect (EWC) claims to be a decentralised, community-based digital asset trading platform built on the Solana blockchain. While it promotes transparency and P2P trading, it also offers tiered investment packages with promised returns and governance tokens — a setup that demands rigorous scrutiny and verification, especially as it prepares to launch in the final quarter of 2024.
WWCoin (also known as TOFRO) offers what it describes as daily profit signals and bonuses, with earnings potentially reaching six per cent per day. However, the NFIU cautioned that the scheme features excessive withdrawal fees, vague operations, and exaggerated profit claims typical of scams.
Delux presents itself as a platform for earning money through social media engagement, content creation, and completing basic online tasks. While it appeals to youths and freelancers, its heavy focus on referral bonuses and flexible income opportunities bears similarities to models that risk turning into pyramid schemes.
ADK runs on a system that imposes withdrawal fees and promotes user recruitment through multiple agent tiers. Earnings reportedly depend on the losses of others, backed by questionable claims of a 97% success rate. With no transparent product or sustainable revenue source, the platform poses significant risks to users.
Meanwhile, NFIU urged Nigerians to remain vigilant and perform thorough checks before investing.
“Any platform promising guaranteed profits with no mention of risk, demanding payment in untraceable digital currencies, or hiding behind complex technical terms should be viewed with skepticism,” the agency advised.
It also reminded financial institutions and professionals to fulfill their obligations in identifying and reporting suspicious financial activities.
“The NFIU remains committed to safeguarding Nigeria’s financial space and urges all stakeholders to play their part in exposing and defeating these fraudulent investment operations,” the advisory stated.
