The collapse of CBEX has led to the arrest order of its six promoters, marking another significant event in Nigeria’s crackdown on cryptocurrency fraud.
The Federal High Court in Abuja has ordered the arrest of six promoters involved in the collapsed CBEX cryptocurrency investment scheme, which allegedly scammed Nigerian investors out of $1 billion.
The Economic and Financial Crimes Commission (EFCC) filed an ex parte motion against the defendants, including Adefowora Abiodun Olanipekun and Emmanuel Oku, accusing them of using ST Technologies to promote the fraudulent CBEX platform.
CBEX promised high returns but became inaccessible, leaving investors unable to withdraw their funds. The EFCC noted that the platform involved foreign collaborators, with victims’ funds being converted into USDT and deposited into wallets controlled by the suspects. Despite being registered with the Corporate Affairs Commission (CAC), ST Technologies was not licensed by the Securities and Exchange Commission (SEC) to operate as an investment platform.
The court granted the EFCC’s request for a warrant of arrest and remand, highlighting the involvement of international collaborators and the complexity of the case. The EFCC aims to place the suspects on a Red Notice list for tracking and arrest.
The case sheds light on the risks of investing in unregistered platforms. The EFCC stressed that holding a Special Control Unit against Money Laundering (SCUML) certificate does not give legal clearance to offer investment services in Nigeria.
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