Nigerian Court Orders Arrest of Six in $1B CBEX Crypto Fraud

A Nigerian court has given the Economic and Financial Crimes Commission (EFCC) the go-ahead to arrest and detain six individuals allegedly involved in CBEX cryptocurrency investment fraud. The platform reportedly promised unrealistic returns, luring investors into what is now believed to be a sophisticated scam amounting to over $1 billion, according to Punch.

The Alleged Promoters of the CBEX Fraud

The Federal High Court in Abuja granted the EFCC’s request on Thursday, following an ex parte application filed by the commission. The six individuals named in the motion include Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. These individuals are accused of being behind the fraudulent investment scheme through CBEX, which allegedly operated under the guise of offering cryptocurrency-related financial products.

The EFCC’s counsel, Fadila Yusuf, told the court that the defendants were behind the promotion of CBEX via a company called ST Technologies International Limited. This company reportedly persuaded the public to invest in the platform by promising returns as high as 100%, a hallmark of fraudulent schemes targeting unsuspecting investors.

Court Orders Arrest and Detention

Justice Emeka Nwite granted the EFCC’s request for arrest warrants against the six suspects and an order to remand them in the EFCC’s custody until the investigation and potential prosecution are completed. According to the EFCC, they received intelligence linking the suspects to the fraudulent activities in April 2025, necessitating urgent action. 

The EFCC’s approach aims to prevent further harm to investors, as it is working closely with international agencies, including Interpol, to track down the remaining perpetrators and recover the stolen funds.

CBEX's Suspicious Activity and Lack of Regulation

The EFCC’s investigation revealed that CBEX operated under ST Technologies, a company registered with Nigeria’s Corporate Affairs Commission (CAC). However, the company never obtained the necessary license from the Securities and Exchange Commission (SEC) to operate as an investment firm. The lack of registration and proper licensing immediately raised red flags.

Despite having a certificate from the Special Control Unit against Money Laundering (SCUML), ST Technologies was never authorized to handle investments. This violation has further complicated the situation, as the company used its unregulated status to lure in investors who believed they were participating in legitimate cryptocurrency activities.

Before the platform went dark, users started facing difficulties. CBEX restricted withdrawals on April 9, prompting concerns among investors. In a strange twist, the platform asked users to deposit additional funds for account verification—$100 for accounts below $1,000 and $200 for those above. The unexpected request for additional funds, coupled with the withdrawal restrictions, raised suspicions but many users continued to comply, unaware that the platform was preparing to shut down.

Regulatory Oversight and Legal Action

While the SEC only recently became aware of CBEX’s operations, its Director-General, Emomotimi Agama, pointed out that the platform was never registered with the commission, a critical factor in regulating such investment schemes. He stressed that registration is a prerequisite for operating legally within the country’s investment landscape.

Agama also warned the public to be vigilant before committing funds to cryptocurrency investments and urged influencers to take responsibility when promoting platforms. Under Nigeria’s new Investment and Securities Act (ISA) 2025, anyone found promoting unregistered investment schemes faces a fine of N20 million or up to 10 years in prison. This legislation has intensified the crackdown on fraudulent platforms, sending a clear message to those promoting schemes like CBEX.

EFCC’s Breakthrough in the Investigation

The EFCC’s investigation has already led to the arrest of two suspects connected to the CBEX fraud. The identities of these individuals remain undisclosed, but the EFCC’s continued efforts are expected to lead to the capture of the remaining suspects, including one Briton.

The EFCC is now focusing on understanding how CBEX infiltrated Nigeria’s digital asset market, examining the promoters behind the platform, and uncovering the funding sources linked to the operation. The commission’s efforts are currently under close surveillance, with a cautious approach to ensure the case is handled with care.

The Shift in Nigeria's Cryptocurrency Landscape

The CBEX fraud investigation comes at a time when Nigeria’s approach to cryptocurrencies is undergoing significant changes. In 2023, the Central Bank of Nigeria (CBN) reversed its hardline stance against cryptocurrencies, easing restrictions and opening up possibilities for future regulation.

In April 2025, the Nigerian government passed the new Investments and Securities Act (ISA) 2024, which recognizes cryptocurrencies as securities and places Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges under the SEC’s regulatory purview. This marks a shift toward greater oversight and transparency in the digital asset market, providing a legal framework to prevent fraudulent schemes like CBEX.

With cryptocurrencies becoming increasingly popular in Nigeria, the country has witnessed a boom in crypto adoption, becoming the second-largest holder of cryptocurrencies globally, behind only the United States. However, this surge in interest has also led to increased scrutiny of fraudulent platforms targeting Nigerian investors. The government’s new regulatory framework seeks to provide greater investor protection and foster growth in the digital assets market.