Like the Crypto Bank Exchange (CBEX). a cryptocurrency platform that promised high returns on investments, but have been accused of being a Ponzi scheme, ADK Services has apparently collapsed too.
The ADK Services on the other hand, which has apparently collapsed too, has been accused of being a Ponzi scheme, and reportedly collapsed, leaving thousands of Nigerians with significant financial losses.
While Nigerians reportedly lost about N1.3 trillion on CBEX, some also lost varying amounts to the ADK digital investment scam, with reported individual losses in billions.
One investor in ADK said he lost about N9 million. He made this known while sharing ordeal publicly to warn others about the platform's legitimacy concerns.
Also, Chinonso Okafor, a 32-year-old trader from Lagos, claimed he lost about N3 million, stating that the collapse of ADK left his family with nothing.
Noteworthy is that ADK platform's collapse has left thousands of Nigerians devastated, with many reporting losses of up to 90% of their invested capital.
Collapse and Accusations:
ADK promised high returns on minimal investments, attracting thousands with daily profits.
It uniqueness followed a recruitment-based model, paying returns to existing investors based on funds from new recruits. This model is characteristic of Ponzi schemes.
Similarities to CBEX:
The ADK collapse mirrors the downfall of CBEX, another platform accused of being a Ponzi scheme. Both platforms promised unusually high returns and used aggressive marketing tactics, particularly on social media, to convince people to invest.
ALSO READ:
Regulatory Concerns:
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have warned about participating in unlicensed financial schemes like ADK. The collapse of ADK has reignited concerns about the lack of regulation in Nigeria's financial sector and the need for stricter measures to protect citizens.
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria have reiterated warnings about participating in unlicensed financial schemes.
Investor Losses:
Many investors, mostly everyday Nigerians, have reported losing significant amounts, with some losing up to 90% of their invested capital.
The collapse has left people devastated, with some expressing anger at the lack of regulation.
It's essential to note that ADK's business model and legitimacy have been questioned, and its collapse has raised concerns about the risks of investing in unlicensed financial schemes.
Chuks Egbune/Editor
No comments:
Post a Comment