Abuja, — In a landmark ruling, the Federal High Court in Abuja has authorized the Economic and Financial Crimes Commission (EFCC) to arrest and detain six individuals alleged to have orchestrated a massive cryptocurrency investment scam through the Crypto Bridge Exchange (CBEX).
Court Grants EFCC Ex-parte Motion
On Thursday, Justice Emeka Nwite reviewed an ex-parte application by EFCC counsel Fadila Yusuf and ruled in favour of the anti-graft agency. “I have listened to the submission of the learned counsel, reviewed the affidavit evidence, exhibits and written address,” Justice Nwite stated. “I am of the view that the application is meritorious. Consequently, it is granted as prayed.”
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Under the order, the six named defendants will remain in EFCC custody pending the conclusion of investigations and any subsequent prosecution.
Six Defendants Face Charges of Investment Fraud
The accused—Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim—are collectively charged with defrauding unsuspecting investors of over one billion U.S. dollars. According to the EFCC, the promoters guaranteed returns as high as 100%, luring victims to convert digital assets into USDT (a dollar-pegged stablecoin) and deposit them into wallets controlled by the suspects.
Anatomy of the CBEX Scheme
- Promotion and Recruitment: Through their company, ST Technologies International Limited, the four primary suspects marketed CBEX as a regulated crypto-exchange, persuading Nigerians to invest heavily.
- Platform Shutdown: After deposits exceeded $1 billion, investors suddenly lost access to their accounts and could no longer withdraw funds.
- False Registration Claims: Although the suspects asserted that CBEX was registered in Canada, checks of Canadian business registries reveal no active listing. The only similarly named entity—CBEX Capital Corp—had its license revoked a year ago.
- Misleading Branding: The “CBEX” acronym further misled victims, echoing the China Beijing Equity Exchange, a reputable state-owned merger and acquisition platform.
EFCC’s Rationale for Detention
In her submission, Ms. Yusuf argued that:
- Statutory Mandate: EFCC is empowered to investigate and prosecute financial crimes.
- Risk of Flight: The principal promoters have relocated from their known addresses in Lagos and Ogun states.
- Protection of Evidence: Arrest warrants and detention are necessary to preserve forensic data and witness testimony.
She further urged that remand would allow the agency to place the suspects on an international watch-list should they attempt to flee the country.
Next Steps in the Investigation
The case has been assigned to EFCC’s Cybercrimes Section for:
- Forensic Analysis of digital records and transaction ledgers.
- Interviews with victims and former CBEX staff.
- Collaboration with foreign regulators to trace any cross-border operations.
Upon completion of the probe, the EFCC will determine whether to file formal charges or seek additional remand extensions.
Implications for Investors and Regulators
This prosecution sends a stern warning to unscrupulous operators exploiting Nigeria’s booming crypto market. Financial experts emphasize the need for:
- Stronger Regulatory Oversight by the Securities and Exchange Commission (SEC) to ensure that all crypto-exchanges obtain proper licenses.
- Investor Education on verifying foreign registrations and avoiding schemes promising unrealistic returns.
As the EFCC moves to bring these promoters to justice, the broader crypto community awaits the court’s final determination and the potential recovery of defrauded funds.
