The EFCC has recovered a reasonable amount of funds and arrested two suspects connected to the N1.3 trillion Crypto Bridge Exchange (CBEX) Ponzi scheme, though converting crypto assets to cash remains challenging

The Economic and Financial Crimes Commission (EFCC) has announced significant progress in its ongoing investigation into the collapsed digital investment platform, Crypto Bridge Exchange (CBEX), which allegedly defrauded thousands of Nigerians of an estimated N1.3 trillion.

Also read: CBEX collapse leaves Nigerian investors reeling from ₦1.3 trillion losses

The agency’s Chairman, Ola Olukoyede, revealed that a “reasonable amount” of funds has been recovered, and persons connected to the massive fraud have been arrested.

Speaking in a televised interview with TVC on Sunday, May 25, 2025, Mr. Olukoyede stated, “We have gone far with CBEX. We have been able to recover a reasonable amount of money.”

He explained that despite the stolen funds being in cryptocurrency, the EFCC has successfully traced and recovered part of the proceeds.

However, he noted the inherent difficulty in converting these recovered crypto assets into cash due to the complex nature of such transactions.

“There is no way you’ll get the dollars in cash without necessarily going through the same process,” he explained.

The EFCC chairman disclosed that two suspects have already been apprehended, while others remain at large. It is unclear if these arrests are linked to individuals previously declared wanted by the commission in April following the collapse of CBEX.

“We are not going to give out much because we don’t want the process to be disrupted. We are still after quite a number of people we have declared wanted,” Olukoyede added, emphasizing the ongoing nature of the investigation.

Olukoyede described the probe as challenging due to the fraudsters’ use of non-custodial wallets—crypto wallets not tied to any verifiable identity.

We have gone far with CBEX. We have been able to recover a reasonable amount of money.

He detailed the intricate money trail: “So, from the noncustodial wallet, they moved it to some wallets in Europe, Eastern Europe, particularly Cambodia and from there, they dispersed the money. We have been able to block some of these wallets where money has not been dispersed.”

Earlier reports by PREMIUM TIMES indicated that the Federal High Court in Abuja had ordered the arrest and remand of six CBEX promoters over the alleged $1 billion scam.

Justice Emeka Nwite granted the EFCC’s ex parte motion seeking warrants for their arrest and detention. Named in court documents were Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others.

The EFCC alleges that these individuals used a front company, ST Technologies International Limited, to lure Nigerians into investing in CBEX with promises of unrealistic 100 per cent returns in just 30 days.

EFCC counsel Fadila Yusuf had informed the court that the scheme involved foreign collaborators, necessitating urgent action to prevent suspects from fleeing.

The EFCC clarified that while ST Technologies was registered with the Corporate Affairs Commission, it lacked a license from the Securities and Exchange Commission (SEC) to operate as an investment firm, despite holding a SCUML certificate.

EFCC spokesperson Dele Oyewale previously confirmed the agency’s collaboration with Interpol and other international partners to trace stolen assets.

CBEX collapsed in April, leaving investors unable to access their funds after the platform began restricting withdrawals and demanding additional verification fees—$100 or $200 depending on account size—just before its shutdown.

Despite the collapse, the platform reportedly resumed limited operations, allowing new registrations and withdrawals in what experts described as a tactic to restore investor confidence and perpetuate the fraud.

The alarm was first raised by an X (formerly Twitter) user, @Letter_to_Jack, whose viral post on April 9 warned that CBEX was a Ponzi scheme.

This triggered mass panic and a flood of unfulfilled withdrawal attempts. A recent analysis by crypto expert Taiwo Owolabi estimated total investor losses at N1.3 trillion, with at least $857 million traced to a central USDT wallet.

The fallout has been significant, with angry investors looting the CBEX office in Ibadan, Oyo State, and social media flooded with videos of victims expressing despair.

The Security Exchange Commission (SEC) had repeatedly warned Nigerians against investing in unregistered platforms.

SEC Director-General Emomotimi Agama confirmed the commission was unaware of CBEX’s operations prior to its collapse and reiterated that Nigeria’s Investment and Securities Act 2025 imposes a N20 million fine and up to 10 years in prison for promoting unregistered investment platforms.