EFCC Gets Court Order to Arrest Six Promoters of CBEX $1bn Crypto Fraud Scheme

In a landmark ruling on Thursday, April 24, 2025, the Federal High Court in Abuja granted the Economic and Financial Crimes Commission (EFCC) the legal authority to arrest and detain six individuals suspected of masterminding a colossal cryptocurrency investment scam through a platform known as Crypto Bridge Exchange (CBEX). The ruling, delivered by Justice Emeka Nwite, followed an ex parte motion filed by EFCC counsel, Fadila Yusuf.

The six suspects named in the court order are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. These individuals allegedly used CBEX to lure unsuspecting investors into committing funds under the guise of high-yield cryptocurrency investments. The fraud reportedly amassed over $1 billion before the platform collapsed, leaving thousands of investors stranded and unable to access their funds.

Sophisticated Investment Fraud Exposed

According to the EFCC, intelligence gathered in April 2025 linked the suspects to a highly coordinated investment fraud ring. The scheme was allegedly operated through a registered company, ST Technologies International Limited, which was used to give the CBEX platform a semblance of legitimacy. Investors were promised astronomical returns of up to 100% on their cryptocurrency deposits, an offer that has now been described as “unrealistic and deceptive.”

EFCC counsel Fadila Yusuf told the court that once victims transferred their funds—mostly in the stablecoin USDT (Tether)—to wallets controlled by the suspects, they were initially given limited access to monitor their investment progress on the CBEX platform. However, once the fraudsters had secured over $1 billion in deposits, the platform was abruptly shut down. Withdrawals were blocked, and users lost access, triggering widespread panic and a barrage of complaints to authorities.

Company Legally Registered But Illegally Operated

The EFCC’s investigation found that while ST Technologies International Limited was registered with the Corporate Affairs Commission, it had no licence or approval from the Securities and Exchange Commission (SEC) to conduct investment-related activities. This regulatory breach added a legal dimension to the fraud case, reinforcing the EFCC’s claims of illegality.

Furthermore, investigators discovered that the suspects had vacated their last known addresses in Lagos and Ogun States, complicating efforts to track and question them. As a result, the EFCC sought not only arrest warrants but also an order to place the suspects on a red watch list to facilitate their apprehension through domestic and international law enforcement channels.

Court Grants EFCC’s Prayers in Full

In granting the EFCC’s application, Justice Emeka Nwite acknowledged the merit of the agency’s case. “I have listened to the submission of learned counsel for the applicant. I have also examined the affidavit evidence and the exhibits attached, along with the written address. I am of the view, and I so hold, that the application is meritorious. Consequently, the application is granted as prayed,” the judge ruled.

With the ruling, the EFCC is now legally empowered to arrest and detain the six suspects pending the conclusion of investigations and possible prosecution. This step is seen as a critical move in bringing the alleged perpetrators to justice and restoring investor confidence in Nigeria’s embattled cryptocurrency space.

Wider Implications for Crypto Regulation in Nigeria

The CBEX fraud scandal has reignited public debate on the need for stronger regulatory oversight of cryptocurrency platforms in Nigeria. The Securities and Exchange Commission (SEC) and other financial watchdogs have long warned the public against engaging with platforms that promise excessive returns without regulatory backing.

Experts say this case underscores the dangers of Ponzi-like schemes operating under the guise of digital investment platforms. The EFCC’s aggressive move also aligns with recent global trends as law enforcement agencies in several countries clamp down on crypto-based fraud. According to a 2024 FBI report, Americans alone lost over $6 billion to similar scams last year, a stark reminder of the global scope of the problem.

As the EFCC intensifies efforts to track down and prosecute the CBEX suspects, financial analysts and consumer protection advocates are urging Nigerians to exercise greater caution and due diligence before investing in any cryptocurrency or online financial scheme.