EFCC arraigns two CBEX operators over alleged $1bn investment scam
The Economic and Financial Crimes Commission (EFCC) on Monday arraigned two operators of the controversial Crypto Bridge Exchange (CBEX) on allegations of running an unlicensed investment scheme that allegedly defrauded unsuspecting investors of over $1 billion.
The defendants, Awerosuo Otorudo and Chukwuebuka Ehirim, were brought before Justice Mohammed Umar of the Federal High Court, Abuja, on a three-count amended charge relating to unauthorised financial operations and unlawful investment solicitation.
According to the EFCC, between January 2024 and May 2025, the duo solicited investments from the public via the CBEX platform, promising implausible returns of up to 88 percent, despite lacking regulatory clearance from the Securities and Exchange Commission (SEC).
During the hearing, EFCC counsel Fadila Yusuf informed the court that the amended charge, dated 7 July, superseded the initial charges filed against the defendants. She applied for the court to accept the revised charge and rely on the original proof of evidence.
Defence counsel, Justice Otorudo, raised no objection, after which the charges were read aloud. Both defendants pleaded not guilty to all three counts.
Following their plea, Yusuf requested that the court remand the defendants in a correctional facility, citing the gravity of the offences and the potential risk of flight.
Otorudo, however, asked the court to consider a bail application submitted on 30 June. He argued that the accused had no prior criminal convictions and had voluntarily presented themselves for investigation.
He also contested the EFCC’s claim, publicised on its website, that the defendants obtained $1 billion under false pretences, stating that no such specific charge was currently before the court.
Yusuf countered that the offences were severe and warned that the accused had only come forward after being compelled by a court order. She added that several others involved in the scheme remain at large and that the risk of the defendants absconding if granted bail was significant.
Justice Umar ordered that both men be remanded in Kuje Correctional Centre while reserving ruling on their bail application. The case was adjourned to 18 July 2025 for continuation of trial and decision on bail.
Sources close to the investigation revealed that CBEX operated under ST Technologies International Limited and encouraged Nigerians to invest in cryptocurrency, with deposits converted into stablecoins (USDT). However, the platform allegedly became inaccessible after amassing investor funds exceeding $1 billion, leaving users unable to withdraw their assets.
Preliminary investigations showed that while ST Technologies was duly registered with the Corporate Affairs Commission (CAC), it lacked the requisite SEC authorisation to run an investment scheme.
The EFCC claimed the accused vacated their known addresses in Lagos and Ogun States to avoid apprehension, prompting a court to issue a red notice for their arrest.
Justice Emeka Nwite of another Federal High Court had earlier authorised the EFCC to detain six CBEX operators. So far, three individuals, including Otorudo and Ehirim, have been arrested, while others remain at large.
The anti-graft agency has pledged to see the prosecution through and advised the public to be wary of investment platforms offering returns that appear too good to be true.