The Federal High Court in Abuja has ordered the arrest and remand of six individuals accused of being involved in the fraudulent cryptocurrency investment scheme, “CBEX,” which allegedly defrauded Nigerian investors of approximately $1 billion. The order was granted on Thursday following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC).
The accused include Adefowora Abiodun Olanipekun, Emmanuel Oku, and four other individuals who are alleged to have used a company named ST Technologies to promote the CBEX platform. According to the EFCC, the defendants lured Nigerians into investing in the scheme by promising substantial returns, positioning CBEX as a promising cryptocurrency platform. However, the platform collapsed, and the investors were left with heavy losses.
The EFCC’s investigation into the matter claims that the promoters of CBEX used a combination of social media advertisements, online marketing, and targeted campaigns to attract Nigerians to invest their money. The scheme offered returns that appeared lucrative but were ultimately unsustainable, drawing in thousands of unsuspecting victims. The accused individuals are believed to have used the funds raised through these deceptive practices for personal gain, furthering the extent of the alleged fraud.
Justice Emeka Nwite, who presided over the case, granted the order for the suspects’ arrest after hearing from the EFCC’s legal team, which presented evidence of their involvement in the fraudulent scheme. The Commission alleges that the defendants used their positions to create a facade of legitimacy around CBEX, thus attracting a broad pool of investors.
The EFCC’s motion also revealed that the defendants had been operating without any regulatory oversight, operating in an environment where cryptocurrency investments are still largely unregulated. This has raised serious concerns among Nigerian authorities about the need for stricter regulations to protect citizens from fraudulent investment schemes. While cryptocurrencies remain popular in Nigeria, they are also vulnerable to misuse by scammers who exploit the general lack of understanding and regulation in the space.
The arrest order marks a significant step in the ongoing crackdown on financial fraud in Nigeria, especially in the rapidly growing sector of cryptocurrency. The EFCC has confirmed that it will continue its investigation to determine the full extent of the scam, and whether there are other individuals or entities involved in the fraudulent operation.
This case highlights the increasing dangers posed by unregulated cryptocurrency schemes, which have become a common vehicle for financial fraud in Nigeria and other countries. As Nigerians continue to explore opportunities in the cryptocurrency market, experts have warned of the importance of investing in platforms that are well-regulated and transparent.
The Nigerian government has faced pressure to introduce clearer and more robust regulations to safeguard investors and prevent the rise of fraudulent crypto ventures. With the increasing number of scams targeting citizens, the latest legal development is expected to spur further conversations about the need for regulation and oversight in the digital currency market.
The EFCC has vowed to remain vigilant and continue efforts to hold those responsible for financial crimes accountable, urging Nigerians to report any suspicious cryptocurrency schemes and refrain from investments that promise unrealistic returns.
