In a significant development in Nigeria’s fight against financial crimes, the Economic and Financial Crimes Commission (EFCC) has made strides in the investigation of the collapsed Crypto Bridge Exchange (CBEX), a digital investment platform that allegedly defrauded over 600,000 Nigerians of more than ₦1.3 trillion.
Background: The Rise and Fall of CBEX
Launched in 2024, CBEX attracted investors with promises of 100% returns within 30 days, claiming to utilize artificial intelligence for cryptocurrency trading. However, in April 2025, the platform abruptly collapsed, leaving users unable to access their funds. The Securities and Exchange Commission (SEC) subsequently declared CBEX an illegal investment operation, and the EFCC initiated a comprehensive investigation into the alleged fraud.
EFCC’s Investigation and Recovery Efforts
EFCC Chairman Ola Olukoyede confirmed that the agency has recovered a portion of the stolen funds and made several arrests related to the CBEX scheme. He noted that the investigation is complex due to the use of non-custodial cryptocurrency wallets, which lack Know Your Customer (KYC) protocols, making it challenging to trace the identities of the wallet owners.
“We have made reasonable arrests and recovered a reasonable amount of money,” Olukoyede stated during an interview on TVC. “However, converting the digital assets back to physical cash remains difficult due to the nature of crypto transactions.”
The EFCC has traced funds linked to the CBEX fraud to at least four countries, including Cambodia and regions in Eastern Europe. Despite freezing several accounts and wallets, Olukoyede acknowledged that full restitution to victims might be impossible, as significant portions of the funds have been dissipated and are beyond Nigeria’s jurisdiction.
Legal Actions and Ongoing Investigations
In April 2025, the Federal High Court in Abuja granted the EFCC’s request to arrest and detain six promoters of CBEX over alleged investment fraud amounting to over $1 billion. The suspects include Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
The EFCC has also declared eight individuals wanted in connection with the scheme, including Johnson Oteno, Israel Mbaluka, Joseph Michiro, Serah Michiro, Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede.
CBEX’s Controversial Resumption of Operations
Despite the ongoing investigations and regulatory warnings, CBEX has reportedly resumed operations, allowing new users to register, trade, and withdraw funds. Existing users, however, have found their previous investments deleted, and the platform now requires them to undergo an insurance verification process and inject fresh capital to restore lost balances. CBEX promoters claim that the losses were due to an AI trading mishap and that the platform is now manually operated.
Public Outcry and EFCC’s Warning
The collapse of CBEX has led to widespread public outrage, with aggrieved investors storming the company’s office in Lagos in search of officials. Despite the platform’s collapse and public warnings, some Nigerians continue to fall victim to the fraudulent scheme. Olukoyede urged the public to exercise caution and avoid get-rich-quick schemes. “I even learnt that there are still some of these perpetrators, and Nigerians are still falling victim. I believe people should learn from this,” he said.
Final Thoughts
The CBEX case underscores the risks associated with unregulated digital investment platforms and the challenges faced by law enforcement agencies in combating financial crimes involving cryptocurrencies. The EFCC continues to pursue all individuals involved in the CBEX fraud and urges the public to remain vigilant against similar schemes.
