In yet another shocking turn of events, the ADK Ponzi scheme has come crashing down, leaving thousands of Nigerians with empty pockets and shattered hopes. This latest financial scandal, which surfaced a year ago, mirrors the infamous collapse of the CBEX investment platform, which had already left many victims reeling.
ADK, which promised its investors high returns on minimal investments, has been operating as a high-risk scheme since its launch in early 2024. It attracted thousands of individuals with promises of daily profits, using a recruitment-based model that paid returns to existing investors based on the funds brought in by new recruits. This “pay-to-play” model quickly gained traction in Nigerian cities and towns, with many individuals eager to invest their savings in the hopes of quick financial success.
The collapse today came without warning. The ADK platform went offline early this morning, with investors unable to access their accounts or retrieve their funds. Shortly afterward, the platform’s official communication channels, including social media accounts and customer service lines, went silent, fueling rumors of its downfall. By midday, a flood of reports from disgruntled investors poured in, revealing the full scale of the scam.
Most of the investors involved were everyday Nigerians, many of whom had invested their life savings, with the hope of achieving financial independence or helping their families. The collapse has left people devastated, with some reporting losses of up to 90% of their invested capital. Others have expressed anger and frustration at the apparent lack of regulation in the Nigerian financial sector.
“I put everything I had into ADK because I believed the promises they made,” said Chinonso Okafor, a 32-year-old trader from Lagos who lost nearly N3 million in the scheme. “Now, my family and I are left with nothing, and there’s no one to hold accountable.”
ADK, like CBEX before it, capitalized on the absence of stringent oversight in Nigeria’s financial markets, with regulators seemingly unable to keep up with the rapid rise of online investment platforms. The Central Bank of Nigeria (CBN) had issued warnings earlier in the year about the risks of unregulated financial schemes, but the public’s desire for quick returns appears to have overridden caution.
The collapse of ADK comes barely 24 hours after the highly publicized downfall of CBEX, another Ponzi scheme that promised outsized returns to its users. CBEX was popular in the cryptocurrency space, enticing Nigerians with promises of high returns from cryptocurrency mining and trading. However, in January 2025, the platform froze all accounts and issued a brief statement claiming that it was “restructuring.” Within days, it was clear that CBEX was a fraud, and its investors were left with nothing.
Following the collapse of CBEX, the Nigerian government faced intense criticism for its inability to regulate the growing number of online financial schemes, with many calling for stricter measures to protect citizens. The ADK collapse is likely to reignite those concerns, as the country grapples with the aftermath of another high-profile fraud case.
In response to the ADK disaster, the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria have reiterated their warnings about participating in unlicensed financial schemes. SEC officials confirmed that they had been monitoring ADK but lacked the legal authority to shut down the platform without concrete evidence of fraud.
“We urge Nigerians to be cautious when engaging with any financial platform that is not licensed or registered with the appropriate regulatory authorities,” said the SEC in a statement. “The regulatory landscape is evolving, and we are committed to taking stronger actions against illegal platforms, but it is equally important for the public to exercise due diligence.”
Despite these warnings, many Nigerians continue to flock to these high-risk schemes, lured by the promise of quick wealth and the belief that such platforms are legitimate. This poses a significant challenge for regulators, who are working with limited resources to tackle the issue.
One of the key factors behind the success of both ADK and CBEX has been their aggressive marketing tactics, particularly on social media platforms. Facebook, Instagram, and WhatsApp were used extensively to spread testimonials and success stories, which convinced many Nigerians to join the schemes.
“I first heard about ADK from a friend who posted a success story on Facebook,” said Grace Adeola, a 28-year-old nurse from Abuja. “I saw all these people claiming they made huge profits in just a few weeks, and I thought I could do the same. I never thought it would end like this.”
Experts have raised concerns about the role of social media in facilitating such scams, with many pointing to the lack of regulation on platforms where fraudulent schemes can easily be promoted without consequence.
As the dust settles from the ADK collapse, many are left wondering what steps will be taken to prevent further incidents like this. In the wake of the CBEX and ADK collapses, calls for reform are intensifying, with some advocating for the creation of a central database to track unregistered investment platforms.
The Nigerian government has yet to announce any specific measures, but many expect that this latest scandal will lead to a renewed push for more comprehensive financial regulations.
For now, the victims of ADK and CBEX are left to pick up the pieces. While some are calling for legal action, the road to justice seems uncertain. As the dust settles on this latest Ponzi scheme collapse, one thing is clear: Nigerians will need to be more cautious than ever when it comes to their finances in the face of such deceptive schemes.
