The Economic and Financial Crimes Commission (EFCC) in Nigeria has been granted permission by a court to arrest and detain six individuals allegedly involved in the CBEX cryptocurrency investment fraud. The fraudulent platform promised unrealistic returns, attracting investors to what is now believed to be a sophisticated scam totaling over $1 billion.
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 promoting the fraudulent investment scheme through CBEX, operating under the guise of offering cryptocurrency-related financial products.
The Federal High Court in Abuja granted the EFCC’s request for arrest warrants against the suspects and an order to remand them in custody until the investigation and potential prosecution are completed. The EFCC received intelligence linking the suspects to the fraudulent activities in April 2025, prompting urgent action to prevent further harm to investors.
The investigation revealed that CBEX operated under ST Technologies, a company registered with Nigeria’s Corporate Affairs Commission (CAC) but never obtained the necessary license from the Securities and Exchange Commission (SEC) to operate as an investment firm. Despite having a certificate from the Special Control Unit against Money Laundering (SCUML), ST Technologies was never authorized to handle investments, raising red flags about its legitimacy.
Before CBEX went dark, users faced difficulties with withdrawals being restricted. The platform requested additional funds for account verification, leading to suspicions among investors. The lack of regulatory oversight allowed CBEX to operate unchecked, deceiving users into believing they were participating in legitimate cryptocurrency activities.
The EFCC’s efforts to crack down on fraudulent platforms like CBEX are part of Nigeria’s evolving cryptocurrency landscape. In 2023, the Central Bank of Nigeria (CBN) reversed its stance on cryptocurrencies, opening up possibilities for future regulation. The new Investments and Securities Act (ISA) 2024 recognizes cryptocurrencies as securities, placing Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges under SEC regulation to prevent fraudulent schemes and protect investors.
As cryptocurrencies gain popularity in Nigeria, the country aims to balance growth with investor protection. The government’s regulatory framework seeks to foster growth in the digital assets market while preventing fraudulent activities like the CBEX scam. The EFCC’s ongoing investigation aims to uncover the promoters behind CBEX, track down funding sources, and ensure justice is served for the victims of this elaborate cryptocurrency fraud.