XM: Another Ponzi Investment Scheme Crashes As Organisers Disappear, Shut Down Office
- Investors of XM Future Music Group have been left to count their losses after organisers shut down their Lagos office
- Angry investors and residents were seen looting items from the abandoned office in Badagry in an attempt to recover funds
- The SEC has warned Nigerians about putting their money in investments promoted on social media without verification
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Another Ponzi investment platform has crashed in Nigeria after its organisers allegedly disappeared and shut down operations, leaving many subscribers stranded and unable to access their funds.
The failed scheme, identified as “XM Future Music Group,” reportedly closed its office in the Apa area of Badagry, Lagos State, on Friday, May 16, without prior notice, sparking outrage among investors who claimed they had lost significant sums of money.
Source: Getty Images
XM management unreachable
Videos circulating on social media showed angry residents and suspected investors storming the abandoned office and carting away office property, including generators, plastic chairs, fans, televisions and other equipment.
Punch reports that the organisers had promised participants high returns on investments through an online earning structure that allegedly required users to recruit more subscribers and make deposits to unlock profits.
However, panic spread among members after withdrawal requests reportedly failed, and the company’s communication channels became unreachable.
According to some victims, they were swindled and deceived by the operators on the promises made, and when they were certain of people coming, they vanished into thin air.
The crash comes following the increase in Ponzi scheme scams being brought down in the country, where increasing hardship and unemployment have made it necessary for most Nigerians to source additional income streams.
Financial operators and regulators have repeatedly warned the public against investing in organisations that claim to offer an unrealistic interest rate without a clear, verifiable business model or regulatory approval.
As of the time of filing this report, no official statement has been passed by the relevant authority.
Source: Facebook
SEC warns Nigerians
The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging in unregistered online investment schemes heavily promoted on social media platforms.
The Commission, in a public notice dated May 8, 2026, shared via its official X account, said these platforms lure investors with promises of unrealistic or guaranteed returns despite not being registered or authorised to operate.
SEC revealed that the promotion of the investment schemes is done across platforms such as WhatsApp, Instagram, TikTok, Telegram, and Facebook.
SEC said:
"Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes."
Voya Investment Management unregistered
In a related development, the SEC has also issued a public warning against an online investment platform operating under the name Voya Investment Management (VIM).
It noted that the company is not authorised to operate in Nigeria’s capital market.
According to the SEC, the operators of the platform have falsely presented themselves as being supervised by the Commission and have displayed a document described as a certificate of identity verification purportedly issued by the regulator.
Source: Legit.ng
