Court denies bail to CBEX promoters over alleged $1bn crypto fraud

who are currently held by the Economic and Financial Crimes Commission (EFCC) over an alleged $1 billion fraud scheme targeting Nigerian investors.

Justice Emeka Nwite, delivering the ruling on Monday, 30 June, rejected the bail applications on the grounds that the allegations were grave and supported by compelling evidence presented by the EFCC.

Defence counsels, Babatunde Busari and Justice Otorudo, had applied for bail on behalf of their clients, requesting lenient terms and citing prolonged detention as well as concerns over one suspect’s health condition. However, Justice Nwite concluded that the arguments presented were insufficient to warrant bail.

The court upheld the EFCC’s affidavit, which outlined reasons for continued detention, noting that although no formal charges had been filed at the time the bail applications were submitted, the case had since advanced, with charges now pending in a competent court.

"In view of the foregoing, and considering the nature of the case and the fact that a charge has now been filed, I am of the view that the interest of justice will be best served by transferring this application to the trial court,” Justice Nwite ruled.

The judge also dismissed a separate application for medical bail for Abiodun, one of the defendants, stating that the detaining authority is capable of providing appropriate medical attention.

According to the EFCC, the accused operated the fraudulent CBEX platform through a shell company, ST Technologies, enticing thousands of Nigerians to invest. The platform allegedly received deposits totalling over $1 billion before becoming inaccessible, leaving investors unable to retrieve their funds.

In an earlier ruling on 24 April 2025, the court granted an EFCC motion ex parte to arrest and detain six key promoters of CBEX. The named suspects include Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.

The EFCC has indicated its readiness to prosecute the suspects under the provisions of the Administration of Criminal Justice Act.