Thousands of Nigerians have reportedly lost money following the collapse of an online investment platform known as XM Future Music Group, popularly called XM.
The platform, which allegedly operated like a Ponzi scheme, promised users returns of up to 100 per cent within 30 days through music streaming and digital task activities.
Promoters reportedly convinced subscribers that they could earn money by listening to music and completing simple online engagements. The promise of quick and massive profits attracted many Nigerians looking for alternative sources of income amid economic hardship.
Reports from affected users revealed that subscription packages ranged from ₦21,600 to as high as ₦93 million. The scheme also allegedly claimed that an investment of ₦21 million could yield about ₦327 million within one month.
Subscribers were reportedly asked to pay a so-called “work deposit” after completing a trial stage before gaining full access to the investment structure.
Trouble started after many users began experiencing failed withdrawal attempts over the past 24 hours. Several subscribers also claimed that support groups linked to the platform suddenly disappeared, while the website and communication channels became inaccessible.
Concerns deepened when the XM website reportedly went blank on Wednesday, May 13, leaving users unable to access their accounts or funds.
The development has sparked fears that the platform may have collapsed in a manner similar to several previous Ponzi schemes that defrauded Nigerians.
Many victims are said to be battling emotional and financial distress after investing huge amounts into the platform. Some reportedly borrowed money from microfinance banks, sold personal properties, or used school fees and savings with hopes of earning quick returns.
Several affected users have now taken to social media to express frustration over trapped funds and the inability to reach the operators of the platform.
To gain public trust, promoters of the scheme allegedly circulated documents claiming the business was registered in Colorado, United States.
The incident has once again renewed concerns about the increasing number of unregulated online investment platforms targeting Nigerians.
Regulatory bodies, including the Economic and Financial Crimes Commission and the Securities and Exchange Commission, have repeatedly warned Nigerians against investment schemes that promise unrealistic and guaranteed returns.
Financial experts have also continued to caution that legitimate investments rarely offer massive profits within a short period without proper licensing and transparent business operations.
Some of the popular Ponzi schemes that previously collapsed in Nigeria include MMM Nigeria, MBA Forex, Racksterli, Crowd1 and Afriq Arbitrage System.
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