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Nigerian Court Approves Arrest of Six CBEX Promoters in $1 Billion Fraud Case

By ToTo BugelmanNewcomer0 rep· 4/26/2025
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A Federal High Court in Abuja has authorized the Economic and Financial Crimes Commission (EFCC) to arrest six promoters of the Crypto Bridge Exchange (CBEX) over allegations of defrauding investors of over $1 billion. This decision comes amid growing concerns about cryptocurrency scams in Nigeria, as many victims have reported being unable to withdraw their funds from the platform.

 

Key Takeaways

  • The EFCC has been granted permission to arrest six individuals linked to the CBEX fraud.

  • The alleged scam has reportedly defrauded investors of over $1 billion.

  • The court's decision reflects Nigeria's ongoing crackdown on cryptocurrency-related fraud.

 

Background of the Case

The court ruling, delivered by Justice Emeka Nwite, followed an ex-parte motion filed by the EFCC. The commission's lawyer, Fadila Yusuf, presented evidence suggesting that the defendants used their company, ST Technologies International Limited, to promote CBEX, luring unsuspecting investors with promises of unrealistic returns of up to 100%.

The EFCC's investigation revealed that the suspects had misled investors into converting their digital assets into a stablecoin, USDT, which was then deposited into wallets controlled by the promoters. After initially allowing access to the investment platform, CBEX later restricted withdrawals, leading to widespread panic among investors.

 

The Defendants

The six individuals named in the court order are:

  1. Adefowora Abiodun Olanipekun

  2. Adefowora Oluwanisola

  3. Emmanuel Uko

  4. Seyi Oloyede

  5. Avwerosuo Otorudo

  6. Chukwuebuka Ehirim

These individuals are now considered fugitives, as they have reportedly moved from their last known addresses in Lagos and Ogun states.

 

Court Proceedings

During the court session, Justice Nwite stated that he found merit in the EFCC's application for an arrest warrant. He emphasized the importance of the commission's role in investigating financial crimes and ensuring justice for the victims of the alleged fraud. The judge granted the EFCC's request to detain the suspects pending further investigation and potential prosecution.

 

Implications for Cryptocurrency Regulation

This case highlights the increasing scrutiny of cryptocurrency operations in Nigeria. The EFCC has previously expressed its commitment to recovering lost investments for victims of the CBEX scheme, collaborating with international agencies to track down the suspects. The Nigerian government has also been proactive in implementing regulations to prevent similar scams in the future.

In light of the CBEX scandal, the Nigerian Securities and Exchange Commission (SEC) has reiterated that any entity offering investment services must be registered and licensed. This move aims to protect investors and ensure that only legitimate platforms operate within the country.

 

Sources

 

This article was created with support from AI-driven technology, drawing on multiple reputable sources. The final content has been thoroughly reviewed and edited by BlockzHub's editorial team to ensure accuracy, clarity, and coherence. Original reporting sources are credited whenever appropriate and as required. The opinions expressed in this article do not necessarily represent the official views or positions of BlockzHub. This article is intended for informational purposes only and should not be considered financial or professional advice. Investing involves risk, and you should consult a qualified financial advisor before making any investment decisions.

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Nigerian Court Approves Arrest of Six CBEX Promoters in $1 Billion Fraud Case | BlockzHub