Two crypto platform operators face serious fraud charges in Nigeria after allegedly running an unlicensed scheme promising massive returns.
A Federal High Court in Abuja has ordered Awerosuo Otorudo and Chukwuebuka Ehirim, operators of Crypto Bridge Exchange (CBEX), to be held in Kuje Prison until July 18. They are accused of running a fraudulent investment scheme.
The Economic and Financial Crimes Commission (EFCC) charged them with three offences involving illegal financial operations and unlicensed investment activities. The two pleaded not guilty.
Their lawyer argued for bail, saying they had no criminal record, voluntarily cooperated with the EFCC, and were unlikely to flee. He also said there was no evidence that the public gave them money.
However, EFCC’s lawyer opposed bail, saying the suspects only surrendered under pressure and may flee if released.
The EFCC claims the defendants used a company, ST Technologies, to lure investors through CBEX, promising up to 100% returns. Investors were told to deposit funds in crypto wallets linked to the suspects. When deposits reached over $1 billion, withdrawals were blocked, and the platform became inaccessible.
Though ST Technologies was registered, it was not licensed by Nigeria’s Securities and Exchange Commission. The EFCC added that the suspects had left their last known addresses.
Earlier, in April, another judge had allowed EFCC to detain six CBEX operators, including Otorudo and Ehirim. But in new charges, only these two were named.
If found guilty, they face up to five years in prison or fines under various Nigerian financial laws. The court will rule on their bail application on July 18.
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