Crypto Mirage: Court Orders Arrest of Six CBEX Promoters Over Shocking $1 Billion Scam

In a dramatic turn of events that has sent shockwaves through Nigeria’s financial and tech communities, the Federal High Court in Abuja has ordered the arrest and remand of six individuals behind what is being described as one of the largest cryptocurrency frauds in the country’s history. The accused are alleged promoters of the now-defunct Crypto Bank Exchange (CBEX), a platform that promised life-changing returns but instead vanished with over $1 billion—an estimated ₦1.3 trillion—of investor funds.

Justice Emeka Nwite issued the arrest warrant on Thursday after the Economic and Financial Crimes Commission (EFCC) brought an ex parte motion before the court, highlighting the urgent need to apprehend those responsible for the massive financial heist. According to the EFCC, the suspects—Adefowora Abiodun Olanipekun, Emmanuel Oku, and four unnamed accomplices—lured thousands of unsuspecting Nigerians into investing in CBEX, a platform that appeared legitimate but was, in fact, nothing more than a carefully constructed house of cards.

The EFCC’s legal representative, Fadila Yusuf, revealed startling details about the scheme in court. She stated that the suspects operated through a company known as ST Technologies International Limited, which they used as a front to market CBEX. The group aggressively advertised the investment platform online and offline, making bold claims of returns as high as 100%, an unrealistic figure that nonetheless attracted droves of eager investors. Through digital marketing campaigns, webinars, and testimonials—many of which have since been discovered to be fake—they built credibility and trust with a wide audience, drawing in more and more victims by the day.

According to the EFCC, the modus operandi was as sleek as it was sinister. Investors were required to transfer their digital assets, mostly in the form of cryptocurrency, to wallets associated with CBEX. Once funds were received, they were immediately converted into the stablecoin USDT and redirected into private wallets allegedly controlled by the suspects. For a while, CBEX appeared to function like a legitimate platform, providing fabricated dashboards that displayed impressive earnings and growth. But it was all a mirage. When the platform abruptly shut down, users found themselves locked out of their accounts, unable to withdraw funds or even contact the so-called customer service.

The Commission explained that none of the investors' funds were held in Nigerian accounts, making it more challenging to trace and recover them. Instead, the digital trail led to offshore wallets, complicating the investigation and prompting the EFCC to seek international help. Interpol has since been contacted, and the EFCC has begun proceedings to place the accused on a Red Notice list—effectively alerting law enforcement agencies around the world to aid in the suspects' capture.

Even more disturbing is the fact that ST Technologies, the company through which CBEX was promoted, was fully registered with Nigeria’s Corporate Affairs Commission (CAC). However, it lacked any license from the Securities and Exchange Commission (SEC), the body legally responsible for authorizing investment and financial services within the country. This means the entire operation was not only unethical but blatantly illegal. “It’s a glaring example of regulatory evasion and corporate deceit,” Yusuf told the court, adding that the operation was intentionally designed to dodge scrutiny and oversight.

Justice Nwite, in his ruling, acknowledged the weight of the evidence presented by the EFCC and agreed that the situation warranted urgent legal intervention. He approved the Commission’s request to arrest and detain the accused individuals, pending further investigation and eventual prosecution. The judge emphasized that justice must be served, particularly given the scale of the fraud and the devastating impact on countless Nigerian families who invested their life savings in what turned out to be an elaborate Ponzi scheme disguised as a modern financial revolution.

This case comes at a time when cryptocurrency-related crimes are on the rise across Nigeria. While digital currencies have created new opportunities for wealth creation and financial independence, they have also opened doors for scammers who exploit the lack of awareness, regulatory gaps, and the allure of quick profits. Many victims of the CBEX scam were ordinary Nigerians—students, small business owners, retirees—who believed they had finally found a way out of poverty, only to be left devastated.

As news of the arrests and court orders broke, social media platforms were flooded with reactions ranging from outrage to sorrow. Some users expressed anger at the government for not intervening sooner, while others shared their own experiences of being duped by similar schemes. "I lost over ₦4 million to CBEX," one victim posted on X (formerly Twitter). "They showed us fake proof, real-time dashboards. We thought it was real."

The EFCC has assured the public that it is committed to not only apprehending the perpetrators but also recovering as much of the stolen funds as possible. However, the path to recovery is expected to be long and complex, particularly given the borderless nature of digital currencies. The Commission has called on other victims of the scam to come forward and provide information that might aid the ongoing investigation.

Meanwhile, this case has reignited debates about the regulation of digital finance in Nigeria. While the Central Bank of Nigeria has placed restrictions on cryptocurrency transactions through traditional banks, enforcement has been patchy, and many unregistered platforms continue to thrive in the shadows. Experts argue that more robust regulatory frameworks, investor education, and technological surveillance are needed to combat this growing menace.

As the manhunt for the six CBEX promoters intensifies and legal proceedings begin to take shape, Nigerians are once again reminded of the perils that lie behind shiny investment promises. In the end, the CBEX saga serves as both a cautionary tale and a call to action: for regulators to tighten the reins, for citizens to remain vigilant, and for justice to be swift and uncompromising in the face of deception on such a staggering scale.