EFCC Disowns CBEX, Says SCUML Certificate Not License To Operate As Crypto Scam Rocks Nigeria

In a statement issued on Monday, the EFCC confirmed that ST Technologies International Limited, not CBEX, was registered with SCUML on January 16, 2025, under Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022. This registration, a statutory requirement for all Designated Non-Financial Businesses and Professions (DNFBPs) in Nigeria, aligns with the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework. However, the EFCC emphasized: “The EFCC is not a clearing house or regulatory authority of online businesses,” distancing itself from any perceived endorsement of CBEX.

Operating under the names ST Technologies, Smart Treasure, and Super Technology, CBEX promised investors a 100% return within 30 days through supposed AI-driven trading. The platform, which was not registered with the Securities and Exchange Commission (SEC), used its SCUML and Corporate Affairs Commission (CAC) certificates to feign legitimacy.

ST Technologies, registered with the CAC on September 25, 2024, also flaunted a Certificate of Increase in Issued Share Capital—raising its capital from ₦1 million to ₦201 million—to further mislead investors.

The scheme collapsed on April 14, 2025, after restricting withdrawals on April 9 and demanding additional deposits—$100 for accounts with balances below $1,000 and $200 for accounts above—to “verify authenticity.” Many investors initially believed the issue was a technical glitch, only to later discover that their accounts had been wiped clean. Reports indicate CBEX offices in Abuja, Lagos, and Ibadan were abruptly shut down, prompting angry investors to storm the Ibadan branch, looting equipment.

The EFCC, which had listed CBEX among 58 fraudulent platforms in March 2024, reiterated its warnings against Ponzi schemes. EFCC spokesperson Dele Oyewale, speaking on Channels TV’s The Morning Brief, stated that the commission is collaborating with Interpol and international partners to track the perpetrators—comprising both foreign nationals and Nigerian collaborators.

“Investors will get their money back. It might not be in the short term, but the commission will not allow investors to lose their money just like that,” Oyewale assured, noting that steps have been taken to revoke ST Technologies’ SCUML registration due to its deviation from its registered consultancy services into fraudulent trading.

The SEC, in a statement issued on April 17, confirmed that CBEX was never licensed to operate as a Digital Assets Exchange or solicit investments, condemning its deceptive practices. The newly enacted Investment and Securities Act (ISA) 2025, signed by President Bola Tinubu, strengthens SEC’s enforcement powers, criminalizing unlicensed platforms with penalties of up to 10 years’ imprisonment or ₦20 million in fines.

On April 17, the House of Representatives condemned the CBEX scam and urged the EFCC, the Nigeria Police, and Interpol to swiftly prosecute the masterminds and recover stolen funds. Lawmakers also cautioned celebrities and influencers against endorsing unregistered investment platforms, citing CBEX’s use of radio ads on stations like Orisun FM and public charity events to lure investors.

Victims have begun speaking out. One, a Libyan returnee named Bola, was seen weeping at CBEX’s Ibadan office. “I joined with $1,700 from a cooperative loan, planning to repay after my return,” she lamented. Another victim who lost $7,000 said, “I thought I was smart, but I’ve been scammed.”

The CBEX collapse, compared to past Ponzi schemes like MMM, highlights the growing risks of unregulated digital platforms. EFCC’s Oyewale urged Nigerians to conduct thorough due diligence before investing, warning that promises of 100% returns in 30 days are “clear red flags,” especially given Nigeria’s 27.5% interest rate.

On social media, Nigerians expressed outrage. One user, @ebipabo1, questioned why ST Technologies was granted a SCUML certificate, while others, like @assideeqmusic, blamed investors for failing to investigate properly.

As investigations continue, both the EFCC and SEC have pledged to dismantle the syndicate, with names such as Adefowora Abiodun, Oluwanisola Adefowora, Seyi Oloyede, and Emmanuel Uko emerging as alleged promoters. Authorities warn that Nigerians must always verify platforms via authorized portals like the SEC’s www.sec.gov.ng/cmos before investing.