The Federal High Court in Abuja, on Monday, rejected the bail application filed by three detained promoters of Crypto Bridge Exchange (CBEX) in the alleged $1 billion fraud.
Trial judge Emeka Nwite, in a ruling, held that available evidence against the defendants was strong.
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Mr Nwite recalled that the remand of the defendants was based on a court order obtained by the Economic and Financial Crimes Commission (EFCC).
The judge observed that at the time of the application for bail by the CBEX promoters, there was no charge formally filed against them.
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He also observed that a formal charge was only filed against them, before the hearing of their bail application. He said the charge was a waiting for assignment to a judge.
“In view of the foregoing and taking cognisance of the nature of the case and particularly, a charge has been filed against applicants, I am of the view and I so hold that interest of justice will be met by taking this application to the court where the charge is pending for the court to take the arraignment of the applicants and hearing the bail application simultaneously.
“Hence, the application is refused,” the judge declared.
The News Agency of Nigeria (NAN) reports that, on 11 June, Mr Nwite fixed today (Monday) for the ruling after counsel for the EFCC, Fadila Yusuf, and the defence lawyers argued for and against the application.
On 24 April, the judge gave the EFCC the go-ahead to arrest and detain six operators of CBEX over their involvement in the fraud.
The judge, who gave the order after the EFCC’s lawyer, Ms Yusuf, moved an ex-parte motion to the effect, said the detention would be pending the conclusion of investigation of the alleged offences and possible prosecution.
The six suspects include Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede.
Others are Avwerosuo Otorudo and Chukwuebuka Ehirim.
In the motion ex-parte dated and filed 23 April, Ms Yusuf canvassed four grounds for its application.
She said the EFCC had a statutory duty of prevention and detection of financial crimes through investigation.
Ms Yusuf added that “the defendants are at large and a warrant of arrest is required to arrest the defendants for proper investigation and prosecution of this case.”
NAN reports that Adefowora Abiodun (1st defendant), Avwerosuo Otorudo (5th defendant) and Chukwuebuka Ehirim (6th defendant) had been in the EFCC’s custody on investigation.
At the previous hearing, Babatunde Busari, who appeared for Abiodun, and Justice Otorudo, who represented Otorudo and Ehirim, informed the court that they had filed bail applications on their clients’ behalf.
Hearing on bail applications
In their motion on notice brought pursuant to Section 35(1) (4) and Section 36 of the Nigerian constitution (as amended) and Section 158, 162 and 165 of the Administration of Criminal Justice Act (ACJA), 2015, the lawyers sought one order.
They sought an order varying the court’s earlier order made on 24 April, which granted the EFCC leave to arrest and detain the applicants. They urged the court to vary the earlier order granting bail pending the conclusion of the investigations and possible arraignment and trial.
After the arguments of the defence lawyers, the EFCC counsel, Ms Yusuf, vehemently opposed their bail request.
She told the court that their application had been overtaken by event as a charge had already been filed against them.
The lawyer argued that all the defendants in the matter are being charged for offence of obtaining over N1 billion dollars, more than some states’ budgets in Nigeria.
“It is in fact more than a budget of about 10 states joined together my lord,” she said.
She said the commission was still receiving petitions from victims of the alleged fraud.
The lawyer said though granting bail is at the discretion of the court, this should be done judiciously and judicially, urging the court to dismiss same.
In the ruling on Monday, Justice Nwite also dismiss the defence arguement that Abiodun, who is the 1st defendant, is indisposed and hence needed a medical attention.
The judge held that the defence had not shown in their affidavit evidence that the EFCC cannot take the defendants to a hospital for the specialist attention.
Investigations
NAN reports that the EFCC, in the affidavit in support of the motion ex-parte filed against the defendants, said sometimes in April 2025, it received an intel on a alleged investment scheme fraud against the defendants.
It alleged that the defendants and their company, ST Technologies International Limited, using another company, Crypto Bridge Exchange (CBEX) perpetrated the alleged fraud and the case was received and assigned to its cybercrimes section for investigation.
The agency said the preliminary investigation into the intel revealed among others, that Messrs Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko and Seyi Oloyede, using their company ST Technologies International Limited, promoted CBEX “by making advert and lured unsuspecting members of public to invest crypto currencies on CBEX investment platform.”
The EFCC maintained that the defendants promised an unrealistic return on investment of up to 100 per cent.
“That the victims were made to convert their digital assets into a stable coin of USDT for onward deposit into the suspects crypto wallet.
“That the victims were initially given full access to the platform to monitor their investment.
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“That following deposits valued at over 1 billion dollars by the victims, the CBEX investment platform became inaccessible to them and they could no longer withdraw from the investment made.
“That the victims later discovered that the said scheme is a scam.
“That during the course of investigation, it was discovered that the said ST Technologies International Limited though registered with the Corporate Affairs Commission (CAC), it was not registered with the security and Exchange Commission (SEC) for investment purposes.
“That it was also discovered during investigation that the defendants had moved out of their last known address in Lagos and Ogun States.”
The anti-graft agency said that a warrant of arrest was required to place the defendants on a red watch list so that they could be traced and arrested to answer to the case against them.
According to the commission, investigation into the allegation against the defendants revealed a prima facie case of investment scam.
It said it would be in the interest of justice to grant the application.
(NAN)
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