The Economic and Financial Crimes Commission (EFCC) has intensified investigations into the collapse of CryptoBank Exchange (CBEX), a digital investment platform that allegedly defrauded investors of over N1.3 trillion. The scheme, reportedly operated by foreign nationals in collaboration with Nigerian partners, abruptly shut down operations on Monday, leaving thousands of Nigerians and foreign investors stranded and unable to access their funds.
EFCC spokesman Dele Oyewale confirmed to The Opitanglobalmedia on Tuesday that the commission had already been investigating the platform prior to its collapse. He added that the EFCC would now partner with the International Criminal Police Organisation (Interpol) to track down both local and foreign operators behind the fraudulent scheme. “We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” he said.
Oyewale emphasized that the EFCC is committed to recovering stolen funds where possible and prosecuting those behind the platform. “We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure Nigerians are protected from this kind of scheme,” he said. He also noted that many similar Ponzi schemes are currently under investigation.
The CBEX Collapse: How the Scam Unfolded
CBEX, widely promoted on social media, promised investors 100% returns within 30 days through online cryptocurrency trading. Trouble began when the platform restricted withdrawals on April 9, 2025. Investors initially believed it was a technical glitch, but their worst fears were confirmed when they were later asked to deposit between $100 and $200 to “verify” their accounts before gaining access to funds.
Soon after, users discovered their account balances had been wiped out. Investigations revealed that the company had repeatedly changed its domain name between January 2024 and February 2025, a common tactic among fraudulent platforms to evade scrutiny. The platform’s collapse came just days after the Securities and Exchange Commission (SEC) warned against investing in unregistered online trading schemes.
Unconfirmed reports estimate investor losses at over $847 million in USDT (a cryptocurrency pegged to the U.S. dollar). The scam has triggered widespread outrage, with many victims recounting how they were lured into the scheme by friends or influencers boasting of high returns.
National Outrage and Protests Sweep Across States
Anger spilled onto the streets in several Nigerian cities following CBEX’s collapse. In Ibadan, Oyo State, furious investors stormed the company’s office in Oke Ado, looting furniture and equipment in frustration. Security agents, including the police and the Amotekun Corps, were deployed to prevent further escalation.
In Abuja, CBEX’s office in the Jahi district was locked and deserted. A security guard confirmed that no staff reported to work, citing fear of reprisals from angry investors. “They were told not to show up today. People have been coming, but we have refused to allow them in,” the guard told reporters.
Meanwhile, heartbreaking stories have emerged across social media. A user identified as #the_real_aduke shared that she lost $1,000 she had saved for her wedding. Another investor revealed that her brother had lost his school fees. “My brother invested his tuition money. Now he can’t even face my parents,” lamented Chinenye Nduka on Facebook.
Regulatory Agencies Respond, Warn Against Greed
The SEC reiterated its warning to Nigerians about unregulated platforms. With the signing of the Investment and Securities Act (ISA) 2025 by President Bola Tinubu, it is now illegal for any entity to operate online forex trading or digital asset platforms without registration. SEC Director-General Emomotimi Agama described the act as a “landmark step” to safeguard investors and enhance confidence in the financial system.
In response to the CBEX scandal, FCT Minister spokesman Lere Olayinka called on the EFCC and police to expedite investigations. However, he also blamed victims for succumbing to “greed and foolishness,” a sentiment that sparked debate online. Meanwhile, experts stressed the need for increased financial literacy and due diligence before making investment decisions.
Financial educator Kelechi Godfrey shared his own experience of being approached by CBEX promoters. “When someone tells you that you’ll get 100% returns in 30 days, that should be a red flag. Nigerians want to eat their cake and have it. This greed has eaten deep,” he said.
EFCC Expands Hunt for Ponzi Schemes Nationwide
As part of its broader crackdown, the EFCC in March released a list of 58 companies involved in illegal investment activities across Nigeria. Some of the companies have already faced prosecution, with five convicted and others awaiting trial. Among them are Wales Kingdom Capital, Bethseida Group, AQM Capital, and Titan Multibusiness Investment.
The EFCC revealed that these firms lured investors with promises of unrealistic returns in agriculture, forex trading, and real estate, operating without proper licenses. “Many investors suffered heavy financial losses after these companies disappeared with their money,” the EFCC said in a statement.
Oyewale advised Nigerians to verify any financial platform with the Central Bank of Nigeria (CBN) or SEC before committing their funds. “We urge the public to verify any investment opportunity. The EFCC remains committed to protecting citizens from financial predators and ensuring a corruption-free economic environment,” he said.
As investigations into CBEX deepen, the commission has encouraged victims to come forward with complaints and documentation to aid in fund recovery efforts. For now, many Nigerians are left counting their losses and hoping justice will be served.
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