The Federal High Court in Abuja has ordered the arrest and remand of six promoters of the now-collapsed and fraudulent cryptocurrency investment scheme known as “CBEX,” over an alleged $1 billion scam targeting Nigerian victims.
Justice Emeka Nwite granted the order on Thursday following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC) against Adefowora Abiodun Olanipekun, Emmanuel Oku, and four other defendants.
The Commission alleges that the defendants used a company called ST Technologies to promote CBEX, luring Nigerians to invest.
Naijaonpoint previously reported that EFCC spokesman Dele Oyewale had pledged to recover Nigerians’ lost investments in the alleged N1.3 trillion CryptoBank Exchange scam, promising action in collaboration with Interpol and other international agencies.
The EFCC made this commitment while addressing public concerns over the massive losses suffered by Nigerians who invested in CryptoBank Exchange, a digital investment platform currently under investigation for fraud totaling N1.3 trillion.
“An order of this Honourable Court for the issuance of a warrant of arrest for the defendants.
“An order of this Honourable Court remanding the defendants in the custody of the Complainant/Applicant pending the conclusion of the investigation into the alleged offences and possible prosecution,” Yusuf said in open court, emphasizing that the case involves foreign collaborators and a scam worth over $1 billion.
What the Judge Said
In response, Justice Nwite stated that after reviewing the EFCC’s submissions and court documents, he found merit in the application and consequently granted the motion as prayed.
Amid the collapse of the CBEX scheme, the EFCC had clarified that possessing a Special Control Unit against Money Laundering (SCUML) certificate does not constitute legal clearance to operate in Nigeria.
In a statement released Monday, the EFCC noted that while ST Technologies (not CBEX) is registered with SCUML in accordance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, this does not authorize it to offer investment services.
In a bizarre twist, affected users were instructed to deposit additional funds—at least $100—to regain access to their accounts. For users with balances over $1,000, the required deposit was $200.
Shortly before cutting off subscribers, CBEX released a message stating:
“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required. Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews.”
Despite signs of trouble, several new users reportedly joined the platform after the withdrawal restriction, believing it was a temporary technical issue.