CBEX: Suspected Promoters Face Trial Over Crypto Fraud Claims

The Economic and Financial Crimes Commission (EFCC) has taken legal action against two suspected founders of the controversial crypto platform, Crypto Bridge Exchange (CBEX), for allegedly promoting a fraudulent investment scheme without approval from Nigeria’s capital market regulator.

The duo, Avwerosuo Otorudo and Chukwuebuka Ehirim, were arraigned before Justice Mohammed Umar at the Federal High Court, Abuja, on Monday. They are being accused of promising investors up to 88% return on investment—without securing written consent from the Securities and Exchange Commission (SEC).

“The defendants have been alleged to have connived with others at large in promoting an investment scam that defrauded innocent Nigerians of their hard-earned money,” EFCC counsel Fadila Yusuf told the court.

High Returns, No Licence

The amended charge sheet, filed July 7, 2025, includes three key counts. The EFCC claims the CBEX promoters lured unsuspecting Nigerians to deposit money for fixed periods under the promise of nearly double their investment.

The anti-graft agency insists this violates Section 96 of the Investment and Securities Act, 2025, and Section 44 of the Banks and Other Financial Institutions Act, 2020, both of which prohibit unauthorised persons from taking deposits or managing investments.

Although not licensed as a bank or a financial manager, CBEX reportedly collected funds from the public. The Commission also alleges that the defendants ran an unlicensed investment management scheme, in violation of Section 57 of the same Act.

The EFCC is now working closely with Interpol and other international agencies to track assets and recover losses. The scheme is said to have cost Nigerians over ₦1.3 trillion, a staggering figure in a country still grappling with digital fraud concerns.

Battle Over Bail

Both defendants pleaded not guilty to the charges. Their counsel, J.A. Otorudo, applied for bail, arguing that his clients have no prior convictions and have cooperated with investigations since their arrest on April 25, 2025.

He also stressed that the EFCC’s accusations were misleading, claiming no proof had been shown that the duo obtained money under false pretences.

However, EFCC prosecutor Yusuf countered this, stating: “The magnitude of the case before them could prompt the defendants to flee if granted bail.” She urged the court to deny the request, citing the serious nature of the charges and the risk of absconding.

Justice Umar, after hearing both arguments, adjourned the case to July 18, 2025, for a ruling on the bail request. Until then, the defendants will remain in custody at the Kuje Correctional Facility in Abuja.