The Economic and Financial Crimes Commission (EFCC) of Nigeria has launched a manhunt for Elie Bitar, a foreign national suspected of orchestrating a massive crypto investment fraud through the now-defunct Crypto Bridge Exchange (CBEX). It is believed that the scheme has defrauded thousands of Nigerian investors of over ₦1.2 trillion.
EFCC Tracks Key Player in Crypto Fraud
In a recent notice, the EFCC identified Elie Bitar as the mastermind behind the deceptive investment platform of CBEX. The 41-year-old is accused of running a scheme that promised unrealistic returns to investors outside of Nigeria’s financial regulatory framework. Bitar was last known to reside at Eng. George Enemoh Crescent in Lekki Phase 1, Lagos, and the EFCC is seeking the public’s assistance in locating him.
Broader Investigation and Previous Suspects
As the investigation unfolds, the EFCC has disclosed that eight other individuals have been declared wanted for their involvement in promoting CBEX. These suspects are believed to have played a role in convincing investors to participate in the fraudulent scheme. This development comes after one suspect voluntarily surrendered to authorities.
CBEX Collapse Details and Investor Losses
The concerns surrounding the CBEX platform surfaced in early April when users encountered difficulties withdrawing their funds. The situation escalated when the platform issued a suspicious directive requesting users to deposit additional funds under the guise of account verification. With promises of 100% returns on investment within a month and referral bonuses, CBEX attracted a large number of unsuspecting investors. Reports from local media outlets suggest that over 600,000 Nigerians fell victim to the scheme, resulting in losses exceeding ₦1.2 trillion.
SEC Confirms CBEX Unregistered Status
Nigeria’s Securities and Exchange Commission (SEC) has confirmed that CBEX was not registered as an investment platform, cautioning the public against trusting unregulated entities. Despite an associated entity, ST Technologies, holding a Special Control Unit Against Money Laundering (SCUML) certificate, it does not translate to regulatory approval.
Legal Actions: Court Order for Promoters
In a significant development, a Federal High Court in Abuja has granted the EFCC permission to apprehend and detain six prominent CBEX promoters. Justice Emeka Nwite issued the court order following an ex parte motion filed by EFCC counsel Fadila Yusuf. Authorities suspect a connection between the scheme and a larger $1 billion fraud case and are intensifying efforts to bring all involved parties to justice.
In conclusion, it is essential for investors to exercise caution and conduct thorough due diligence before engaging with any investment platform. The case of CBEX serves as a stark reminder of the risks associated with unregulated schemes.