The Federal High Court in Abuja has ordered the arrest and remand of six promoters of the now-collapsed and fraudulent cryptocurrency investment scheme known as “CBEX,” over an alleged $1 billion scam targeting Nigerian victims.
Justice Emeka Nwite granted the order on Thursday following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC) against Adefowora Abiodun Olanipekun, Emmanuel Oku, and four other defendants.
The Commission alleges that the defendants used a company called ST Technologies to promote CBEX, luring Nigerians to invest.
Nairametrics previously reported that EFCC spokesman Dele Oyewale had pledged to recover Nigerians’ lost investments in the alleged N1.3 trillion CryptoBank Exchange scam, promising action in collaboration with Interpol and other international agencies.
The EFCC made this commitment while addressing public concerns over the massive losses suffered by Nigerians who invested in CryptoBank Exchange, a digital investment platform currently under investigation for fraud totaling N1.3 trillion.
What Transpired in Court
- At the resumed court session on Thursday, EFCC counsel Fadila Yusuf informed the court of a motion ex parte relating to investigations into CBEX and the Commission’s intention to prosecute the suspects in accordance with the Administration of Criminal Justice Act.
“An order of this Honourable Court for the issuance of a warrant of arrest for the defendants.
“An order of this Honourable Court remanding the defendants in the custody of the Complainant/Applicant pending the conclusion of the investigation into the alleged offences and possible prosecution,” Yusuf said in open court, emphasizing that the case involves foreign collaborators and a scam worth over $1 billion.
- She noted that while the defendants have not yet been apprehended, they used ST Technologies International Limited to promote another entity, Crypto Bridge Exchange (CBEX), advertising unrealistic returns and luring unsuspecting members of the public to invest cryptocurrencies in the CBEX platform, with promises of returns of up to 100%.
- She further explained that the funds were not warehoused in any Nigerian account, and unraveling the full scope of the syndicate’s activities would take time.
- In its grounds for the application, the Commission stated that victims were made to convert their digital assets into the stablecoin USDT, which was then deposited into wallets controlled by the suspects.
- The EFCC added that after victims deposited over $1 billion, the CBEX platform became inaccessible, preventing users from withdrawing their investments and revealing the operation to be a scam.
- The Commission stressed that although ST Technologies International Limited was registered with the Corporate Affairs Commission (CAC), it was not licensed by the Securities and Exchange Commission (SEC) to operate as an investment platform.
- The EFCC further submitted that a warrant of arrest is necessary to place the defendants on a Red Notice list so they can be tracked and arrested to face charges.
What the Judge Said
In response, Justice Nwite stated that after reviewing the EFCC’s submissions and court documents, he found merit in the application and consequently granted the motion as prayed.
What You Should Know
Amid the collapse of the CBEX scheme, the EFCC had clarified that possessing a Special Control Unit against Money Laundering (SCUML) certificate does not constitute legal clearance to operate in Nigeria.
In a statement released Monday, the EFCC noted that while ST Technologies (not CBEX) is registered with SCUML in accordance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, this does not authorize it to offer investment services.
- Last Thursday, the House of Representatives warned public figures, celebrities, and influencers against promoting unregistered investment platforms following CBEX’s collapse.
- CBEX, a digital investment platform operated by foreign nationals in collaboration with Nigerian partners, reportedly collapsed on Monday, leaving thousands of investors stranded and unable to access their funds.
- The platform, which had promised 100% returns within 30 days through online trading, first restricted withdrawals on April 9, 2025. Many users initially believed the issue was a temporary glitch—until their account balances vanished.
In a bizarre twist, affected users were instructed to deposit additional funds—at least $100—to regain access to their accounts. For users with balances over $1,000, the required deposit was $200.
Shortly before cutting off subscribers, CBEX released a message stating:
“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required. Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews.”
Despite signs of trouble, several new users reportedly joined the platform after the withdrawal restriction, believing it was a temporary technical issue.
