EFCC Recovers Funds in $1 Billion CBEX Crypto Fraud Case, Makes Key Arrests
The Economic and Financial Crimes Commission (EFCC) has made significant strides in its investigation of the collapsed digital investment platform, Crypto Bridge Exchange (CBEX), recovering substantial funds and arresting several suspects.
Speaking in an exclusive interview on TVC on Sunday, EFCC Chairman Ola Olukoyede revealed that the commission has made “reasonable arrests” and retrieved a notable amount of money linked to the fraudulent scheme.
“We have gone far with CBEX. We have been able to recover a reasonable amount of money. We have made reasonable arrests,” Olukoyede said, emphasising that the EFCC is withholding certain details to avoid compromising ongoing operations. “We are still after quite many people we have declared wanted.”
CBEX made headlines earlier this year after thousands of Nigerians reported being unable to access or withdraw their investments, with losses allegedly totalling over $1 billion. The platform, which promised high returns through cryptocurrency trading, abruptly ceased operations in April, leaving investors in disarray.
Olukoyede explained that while some funds have been traced and secured, full recovery remains complex due to the nature of cryptocurrency transactions.
“Even though the money was taken from them through crypto wallets, there’s no way you will get them back in dollars as cash without going through the same process,” he said.
The EFCC’s investigation has been particularly challenging due to the use of “non-custodial wallets” by the fraudsters—anonymous crypto wallets that require no identity verification (KYC), making them difficult to trace.
“These non-custodial wallets were used to move funds to accounts in Europe and Eastern Europe, particularly Cambodia,” Olukoyede said. “We have been able to block some wallets where funds hadn’t yet been dispersed.”
The EFCC chairman also issued a stern warning to Nigerians, noting that similar scams are still ongoing and urging citizens to remain vigilant. “Some of these perpetrators are still out there, and sadly, people are still falling victim. I believe people should learn from this.”
The Securities and Exchange Commission (SEC) has since clarified that CBEX was never registered with the agency, further raising concerns about the lack of regulatory oversight in Nigeria’s digital investment space.
In a legal development tied to the investigation, a Federal High Court in Abuja granted the EFCC permission to arrest and detain six alleged CBEX promoters. The ruling, delivered by Justice Emeka Nwite, followed an ex parte application filed by EFCC counsel, Fadila Yusuf.
The case highlights growing tensions between the rise of unregulated crypto platforms and the need for stronger regulatory enforcement to protect investors in Nigeria’s burgeoning digital economy.
