EFCC Cracks N1.3 Trillion CBEX Crypto Fraud, Recovers Funds and Makes Arrests

Abuja, Nigeria – The Economic and Financial Crimes Commission (EFCC) has announced significant breakthroughs in its investigation into the monumental N1.3 trillion cryptocurrency fraud linked to the now-defunct CryptoBridge Exchange (CBEX). EFCC Chairman, Ola Olukoyede, confirmed that the commission has successfully recovered a portion of the defrauded funds and made several arrests in connection with the elaborate Ponzi scheme.

The CBEX platform, which also operated under names like ST Technologies International Ltd, Smart Treasure, and Super Technology, abruptly collapsed in April, leaving thousands of Nigerian investors reeling from substantial losses. The platform had lured victims with promises of implausibly high returns, reportedly offering 100% returns on investment within 30 days, a classic hallmark of a Ponzi scheme.

EFCC’s investigation, which is ongoing, has revealed that the platform was not registered with the Securities and Exchange Commission (SEC) to operate as a digital asset exchange or solicit investments from the public. The SEC had previously issued warnings against unregistered trading platforms, yet many Nigerians still fell victim to the allure of quick, high returns.

The anti-graft agency is collaborating extensively with international law enforcement bodies, including INTERPOL and the Federal Bureau of Investigation (FBI), to track down both local and foreign perpetrators. The EFCC has intensified its search for several wanted persons implicated in the fraud, including Seyi Oloyede, Emmanuel Uko, Adefowora Oluwanisola, Adefowora Abiodun Olanipekun, Johnson Okiroh Ofienolu, Israel Mbalika, Joseph Michiro Kabera, and Serah Michiro. Ellie Bitar of CBEX Solutions Ltd., previously on the wanted list, has been removed following new information.

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While the exact amount of funds recovered and the number of arrests made were not disclosed by the EFCC chairman, the announcement signals a crucial step towards justice for the defrauded investors. The commission reiterated its commitment to bringing all actors involved in the fraudulent dealings to book and recovering as much of the lost funds as possible.

The CBEX fraud serves as a stark reminder of the inherent risks in unregulated digital investment platforms and the importance of verifying the legitimacy of any investment opportunity with regulatory bodies like the SEC before committing funds. The EFCC continues to urge the public to exercise extreme caution and avoid schemes promising unrealistic returns.