The Economic and Financial Crimes Commission (EFCC) said it has recovered a portion of funds from the collapsed digital investment platform, Crypto Bridge Exchange (CBEX).
It has also arrested persons connected to the massive fraud, the agency’s Chairman, Ola Olukoyede, said in a televised interview with TVC on Sunday.
|
|
Mr Olukoyede said the commission has made “significant progress” in its ongoing investigation of the Ponzi scheme, which scammed thousands of Nigerians out of an estimated N1.3 trillion.
“We have gone far with CBEX. We have been able to recover a reasonable amount of money,” Mr Olukoyede said.
|
|
|
|---|
He explained that although the stolen funds were in cryptocurrency, the EFCC has successfully traced and recovered part of the proceeds.
However, he noted that converting the recovered crypto assets into cash has proven difficult.
“There is no way you’ll get the dollars in cash without necessarily going through the same process,” he explained, referring to the complex nature of crypto transactions.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
The EFCC chairman revealed that two suspects have already been arrested, while others remain on the run. It is unclear if they are part of those declared wanted by the commission in April in the aftermath of the collapse of CBEX.
“We are not going to give out much because we don’t want the process to be disrupted. We are still after quite a number of people we have declared wanted,” he said.
Mr Olukoyede described the investigation as challenging due to the use of non-custodial wallets by the fraudsters—crypto wallets not tied to any verifiable identity.
“So, from the noncustodial wallet, they moved it to some wallets in Europe, Eastern Europe, particularly Cambodia and from there, they dispersed the money. We have been able to block some of these wallets where money has not been dispersed,” he added.
Court orders arrest, remand of CBEX promoters
PREMIUM TIMES had reported that the Federal High Court in Abuja ordered the arrest and remand of six CBEX promoters over the alleged $1 billion scam.
A judge, Emeka Nwite, granted the EFCC’s ex parte motion seeking warrants for the suspects’ arrest and detention.
Named in court documents are Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others. The EFCC alleges they used a front company, ST Technologies International Limited, to lure Nigerians into investing in CBEX with promises of 100 per cent returns in 30 days.
EFCC counsel Fadila Yusuf told the court the scheme had foreign collaborators and required urgent action to prevent suspects from fleeing.
The judge ordered that the accused be held in EFCC custody pending further investigation and potential prosecution.
Coordinated digital fraud
According to the EFCC, ST Technologies was registered with the Corporate Affairs Commission but lacked a licence from the Securities and Exchange Commission (SEC).
The commission clarified that ST’s SCUML certificate does not permit it to operate as an investment firm.
EFCC spokesperson Dele Oyewale earlier confirmed that the agency is collaborating with Interpol and other international partners to trace stolen assets.
CBEX collapsed in April, leaving investors unable to access their funds after the platform began restricting withdrawals.
Users were asked to pay additional verification fees—$100 or $200 depending on account size—just before the platform shut down.
Despite its collapse, the platform reportedly resumed limited operations, allowing new registrations and withdrawals in what experts described as a tactic to restore investor confidence and continue the fraud.
A viral post on 9 April by an X (formerly Twitter) user, @Letter_to_Jack, had warned that CBEX was a Ponzi scheme. The post attracted over a million views and triggered mass panic, leading to a flood of withdrawal attempts that CBEX failed to honour.
A recent analysis by crypto expert Taiwo Owolabi estimated total investor losses at N1.3 trillion, with at least $857 million traced to a central USDT wallet.
In Ibadan, Oyo State, angry investors looted the CBEX office in Oke Ado, carting away office equipment in protest. Videos of victims expressing despair and recounting their losses have since flooded social media platforms.
The Security Exchange Commission (SEC) had warned Nigerians against investing in unregistered platforms. SEC Director-General Emomotimi Agama confirmed the commission was unaware of CBEX’s operations prior to its collapse.
READ ALSO: CBEX wealth chasers, NDIC and the fate of depositors, By Reuben Abati
“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services,” the agency said.
He warned that the new Investment and Securities Act 2025 imposes a N20 million fine and up to 10 years in prison for promoting unregistered investment platforms.
Recurring crisis
CBEX mirrors other Ponzi schemes that earlier robbed many Nigerians of their hard-earned money. It echoed the infamous Mavrodi Mundial Moneybox (MMM) that crashed in 2016 and left millions in financial ruin.
Despite repeated warnings, many Nigerians continue to fall prey to schemes promising unrealistic returns. Analysts say better public awareness, tougher regulation, and rapid enforcement are critical to curbing the trend.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
