The Enduring Scourge of Ponzi Schemes: A Tale of Greed and Recklessness
There’s an Igbo proverb that says: “Anyone chasing a snake should be ready for a drink. If you kill the snake, you’ll drink the pepper soup, and if the snake bites you, you’ll drink medicine.”
This wisdom perfectly captures the reality of Ponzi schemes, sports betting, and high-yield investment scams—those who engage in them should be prepared for the consequences. Whether they profit briefly or lose everything, they have no one to blame but themselves. Zero sympathy.
The recent collapse of yet another fraudulent investment scheme should serve as a harsh lesson to those still enticed by the illusion of easy money. But let’s be clear—this is not a new phenomenon.
I remember back in 1994, during my secondary school days when some of my classmates were selling what we called “certificates.” The idea was simple: you buy one, then recruit 32 others to contribute small amounts of money, and you keep the profit. It was an early form of a Ponzi scheme, and like all such scams, it collapsed—leaving many stranded.
A Ponzi scheme is an investment fraud where returns are paid to earlier investors using funds from new investors, rather than from actual profit. The system thrives on false promises, unsustainable returns, and eventual collapse.
Over the years, we’ve seen these scams reappear under different names, each time with the same tragic ending:
- MMM** (2016) – Collapsed, wiping out billions.
- Ultimate Cycler – Promised wealth but delivered ruin.
- Get Help Worldwide, Twinkas, iCharity Club – All vanished with people’s money.
- Loopers Club, Givers Forum, BitFinance Global, CBEX – Same story, different branding.
The pattern is always the same:
- False claims of high returns with little risk.
- Early investors are paid to lure in more victims.
- The scheme collapses, and the operators disappear.
One curious observation over the years is that many of these scams seem to originate from Ibadan before spreading nationwide. And when they crash, the fallout is always brutal—ordinary people, especially market women (iya Elepo, iya alata), bear the brunt of the losses.
The problem isn’t just the fraudsters; it’s also the greed and desperation of participants. Many ignore the obvious red flags because they’re blinded by the promise of overnight wealth.
Sports betting and crypto scams operate on a similar psychology—people keep pouring money in, hoping for a miracle, only to lose everything.
If an investment sounds too good to be true, it is. No legitimate business offers 200% returns in weeks. The government can regulate, but individuals must also exercise common sense.
As the Igbo proverb warns: “If you chase a snake, be ready for whatever comes next—pepper soup or bitter medicine.”
Those who keep falling for these schemes have no excuse. The signs are always there.
When will we learn?
Source: Timothy Odedina
