The Economic and Financial Crimes Commission (EFCC) on Monday arraigned two promoters of the now-collapsed and fraudulent cryptocurrency investment scheme known as “CBEX” before the Federal High Court in Abuja for allegedly promising Nigerians an 88 percent return on investments without obtaining written consent from the Securities and Exchange Commission (SEC), among other allegations.
The defendants, Avwerosuo Otorudo and Chukwuebuka Ehirim, entered their pleas before Justice Mohammed Umar, following the EFCC’s amended charge sheet marked FHC/ABJ/CR/216/2025, as seen by Nairametrics.
Nairametrics had previously reported that EFCC spokesman Dele Oyewale 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 reiterated 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.
EFCC Charges
- According to the three-count amended charge dated July 7, 2025, the duo are accused of inviting the public to deposit money for a fixed period or payable on call with CBEX, “with a promise of up to 88% return on investment without obtaining the written consent of the Securities and Exchange Commission.”
- The EFCC maintains that they committed an offence “contrary to Section 96(1) of the Investment and Securities Act, 2025 and punishable under Section 96(5) of the same Act.”
Count 2 states: “That you, AWEROSUO OTORUDO and CHUKWUEBUKA EHIRIM, sometime between January 2024 and May 2025, within the jurisdiction of this Honourable Court, whilst not being a bank or persons authorized to take deposits, invited the public through advertisement to deposit funds with CRYPTO BRIDGE EXCHANGE (CBEX), and you thereby committed an offence contrary to Section 44(1) of the Banks and Other Financial Institutions Act, 2020 and punishable under Section 44(2) of the same Act.”
- The duo are further alleged to have carried on the specialized business of another financial institution, namely, an investment management scheme (CBEX), without a valid license.
- The Commission stresses that this is also a contravention of Section 57(1) and (2) of the Banks and Other Financial Institutions Act, 2020 and punishable under Section 57(5) of the same Act.
What Transpired in Court
- At the resumed proceedings, the amended charge was read to the defendants, and they pleaded not guilty.
- EFCC lawyer Fadila Yusuf, Esq., then applied for the defendants to be remanded at the correctional facility and for the matter to be adjourned for trial.
- However, their counsel, J. A. Otorudo, Esq., applied for the court’s leave to move the bail applications for the defendants.
- He argued that his clients had not been previously convicted and would not jump bail, as they had been in EFCC custody since April 25, 2025, and had cooperated with investigations.
“While the EFCC alleges that the defendants were involved in the investigation of $1 billion, there is no such charge against the defendants. There is no fact stating that the defendants obtained funds by false pretence,” the lawyer stressed, while urging the court to grant bail.
- On her part, Yusuf noted that a prosecutor is in charge of the case and charges could be amended at any time before judgment.
- She urged the court to consider whether the defendants would submit themselves to trial if granted bail.
“The defendants have been alleged to have connived with others at large in promoting an investment scam that defrauded innocent Nigerians of their hard-earned money,” she said.
- Yusuf added that, given the magnitude of what the defendants know is coming before them, they could abscond.
- She then urged the court to refuse their application, stating it was brought in bad faith.
- After hearing the lawyers, the judge fixed July 18, 2025, for ruling on the bail applications.
- Additionally, the judge ordered the defendants to be remanded in the Kuje Correctional Facility pending the ruling on the bail application.
What you should know
This development is a fallout of the EFCC’s ongoing probe of six CBEX promoters in connection with an alleged $1 billion scam targeting Nigerian victims.
- Recall that the Nigerian SEC previously presented the Investment and Securities Bill to former President Muhammadu Buhari, stating that the bill’s purpose was to make the Nigerian securities market more competitive.
- Stakeholders and members of the Nigerian crypto and investment community hailed the bill, saying it would help mitigate the actions of bad actors who use the term “crypto” to swindle the public. They lamented that the current crypto space in Nigeria is dominated by scammers and bad actors, and the proposed bill would serve as a deterrent.
The bill’s passage was also expected to influence investor confidence, foster transparency, and modernize Nigeria’s financial market, especially amid an ongoing legal clampdown on illegal crypto-dealing companies. On March 29, 2025, President Bola Tinubu signed the ISA into law
