A Nigerian court has detained six individuals who have been arrested and allegedly detained by the Economic and Financial Crimes Commission (EFCC). CBEX Cryptocurrency Investment Fraud. The platform reportedly promised unrealistic returns and seduced investors into what is now considered a sophisticated scam of over $1 billion. According to Punch.
CBEX fraud suspect
The Federal High Court in Abuja granted the EFCC’s request on Thursday after a former part-time application filed by the committee. Six individuals named in the move include Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. These individuals have been accused of being behind fraudulent investment schemes through CBEX, which is allegedly operated under the guise of providing cryptocurrency-related financial products.
Fadila Yusuf, an EFCC lawyer, told the court that the defendant was behind CBEX promotion through a company called St Technologies International Limited. The company reportedly persuaded its public to invest in its platform by committing a 100% higher return, a hallmark of a fraudulent scheme targeting unsuspecting investors.
Court order arrest and detention
Judge Emeka Nwite granted an order to remand them in EFCC’s custody of the six suspects, and an order to remand them in EFCC custody until the investigation and potential prosecution is complete. According to the EFCCthey received information in April 2025 that linked the suspect to misconduct, and required urgent action.
EFCC operative (Image: Punch)
The EFCC approach aims to prevent further harm to investors by working closely with international organizations, including Interpol, to track down the remaining perpetrators and collecting stolen funds.
CBEX’s suspicious activity and lack of regulation
An investigation by the EFCC reveals that CBEX operates under ST Technologies, registered with the Nigerian Corporate Affairs Committee (CAC). However, the Company has never obtained the required licenses from the Securities and Exchange Commission (SEC) to operate as an investment company. Lack of registration and proper licensing promptly raised the red flag.
Despite having a certificate from a special control unit for money laundering (SCUML), ST Technologies was not permitted to process the investment. This violation further complicates the situation as it tempts investors who believe they are taking part in legitimate cryptocurrency activities using unregulated status.
Before the platform got dark, users began to face difficulties. CBEX restricted its withdrawal on April 9, urging investors’ concerns. With a strange twist, the platform asked users to deposit additional funds for account verification. This is $100 for accounts under $1,000, and $200 for the above. Coupled with withdrawal restrictions, unexpected requests for additional funds raised doubts, but many users continued to comply, unaware that the platform was preparing to shut down.
Regulatory oversight and legal action
The SEC recently noticed CBEX’s business, and its director, Emomotimi Agama, noted that the board has not registered a platform, a key factor in regulating such investment schemes. He emphasized that registration is a prerequisite for being legally operated within the country’s investment climate.
Agama also warned the public to be vigilant before putting money into cryptocurrency investments, urging influencers to take responsibility for promoting the platform. Anyone who has discovered that under Nigeria’s New Investment and Securities Act (ISA) 2025, the promotion of unregistered investment schemes faces N10 million or up to 10 years of prison. The law has stepped up the crackdown on fraudulent platforms and sent a clear message to those who promote schemes like CBEX.
EFCC breakthroughs in research
An investigation by the EFCC has already arrested two suspects related to the CBEX scam. While these individuals’ identities remain private, the EFCC’s continued efforts are expected to lead to the capture of the remaining suspects, including one British person.
The EFCC is currently focusing on understanding how CBEX has permeated the Nigerian digital asset market, researching the promoters behind the platform and discovering funding sources related to operations. The committee’s efforts are currently under close surveillance and have a careful approach to ensure cases are handled carefully.
Changes in the Nigerian cryptocurrency landscape
The investigation into CBEX fraud occurs when Nigeria’s approach to cryptocurrency is undergoing a major change. In 2023, the Central Bank of Nigeria (CBN) overturned its hard-line stance on cryptocurrencies, eased restrictions and opened up possibilities for future regulation.
April 2025, the Nigerian Government I passed The new Investment and Securities Act (ISA) 2024 recognizes cryptocurrencies as securities and places digital asset exchanges with virtual asset service providers (VASPs) based on SEC’s regulatory scope. This is a shift towards increased surveillance and transparency in the digital asset market, providing a legal framework to prevent fraudulent schemes like CBEX.
With cryptocurrencies increasingly popular in Nigeria, the country witnessed the boom in crypto adoption, becoming the second largest owner of cryptocurrencies globally, after only the US. However, this surge in interest has also led to an increase in scrutiny of fraudulent platforms targeting Nigerian investors. The government’s new regulatory framework is seeking to promote protection of investors in the digital asset market and promote growth.
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