The court ordered the arrest of some of the CBEX promoters identified at EFCC’s request.
The Federal High Court in Abuja has ordered the arrest and remand of six promoters of Crypto Bridge Exchange (CBEX), a ponzi scheme platform that recently crashed on $1 billion fraud charges targeting Nigerian investors.
On Thursday, Judge Emeka Nwait granted the order following an original motion filed by the Economic and Financial Crimes Commission (EFCC), which is investigating the collapse of the platform in alleged fraud and the role of its promoters.
The suspects appointed in court include Adefowora Abiodun Olanipekun, Emmanuel Oku and four others.
The EFCC claims that the group is run through ST Technologies International Limited to promote CBEX and Nigerians to invest in cryptocurrency and other digital assets, and to seduce Nigerians, with a promise of a return of up to 100% within 30 days.
During a court session on Thursday, EFCC lawyer Fadira Yusuf told the judge that the fraud involves foreign collaborators and requires urgent action to track down and arrest the suspect.
The lawyers then urged the court to issue a warrant for the defendant.
She also had pending conclusions on the investigation of the alleged crime and possible prosecution, seeking another order to resign the defendant who is in the custody of the defendant/applicant (EFCC).
Accepting the EFCC’s request, Nwite ordered the suspect to be remanded by arresting EFCC custody, as there is a possibility of an investigation conclusion and prosecution.
Adjusted fraud
According to the EFCC, ST Technologies was registered with the Nigerian Corporate Affairs Commission (CAC), but did not obtain a license from the Securities and Exchange Commission (SEC) to operate as an investment company.
The committee further noted that the special management force for the Money Laundering (SCUML) certificates owned by ST Technologies did not constitute regulatory approval to handle the investment.
Through its spokesman Dele Oyewale, the EFCC has assured Nigerians that they are working with international organizations, including Interpol, to collect stolen funds.
CBEX reportedly restricted its withdrawal on April 9th, raising concerns among users. Just before it got dark, the platform issued a suspicious notice asking users to deposit additional funds ($100 balances under $1,000, $200 to the person listed above) under the guise of account verification. Many users were unaware that the platform was about to shut down.
Despite rising warning signs, some investors continued to participate in the scheme and misunderstood the limitations of technical glitches.
SEC Director Emomotimi Agama said the committee had just noticed CBEX’s business recently and could not act early as the platform was not registered.
“Registration is the foundation of regulation,” he said in a television interview Monday. “It cannot be operated and you cannot apply for a license later. That’s the only thing that’s the red flag.”
Agama warned the public to examine investment opportunities before putting in the funds, urging influencers to act responsibly.
He noted that the new Investment Securities Act (ISA) 2025 imposes 20 million fines and up to 10 years in prison to promote unregistered investment schemes.
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“Bloggers, influencers, or celebrities shouldn’t amplify fraudulent platforms,” he said. “The law is clear and the penalties are strict.”
EFCC records first breakthrough
Two suspects have already been arrested by the EFCC in connection with the CBEX scandal, but their identity has not been revealed.
“We made a breakthrough,” the committee’s top official told the national newspaper. “EFCC Chairman Ola Olukoyede is personally leading the probes that cover how CBEX has entered the digital asset space in Nigeria, its promoters, funding sources and linked financial institutions.”
The EFCC is reportedly tracking five major suspects, including the British.
“We are moving cautiously to avoid failure,” the source added. “All suspects are under surveillance.”
