The Economic and Financial Crimes Commission (EFCC) says it has launched an investigation into alleged defrauding N1.3 trillion fraud perpetrated through a digital investment platform, CryptoBank Exchange (CBEX).
CBEX, operated by a group of foreign nationals in collaboration with their Nigerian partners, reportedly collapsed on Monday, leaving thousands of investors stranded and unable to access their funds.
The EFCC spokesman, Mr. Dele Oyewale, confirmed this on Wednesday while featuring on Channels TV program, “Sunrise Daily,” monitored by Persecondnews that the commission would collaborate with the International Criminal Police Organization (Interpol) to investigate the incident.
According to him, the anti-graft agency had begun investigating CBEX before it collapsed as efforts were underway to arrest both the local and international operators behind the fraudulent scheme.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in.
“We will ensure that we save Nigerians from all these troubles associated with Ponzi schemes. Don’t forget that we already issued an advisory — the 58 companies we alerted the public about. There are many more we are currently investigating.
“We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure that Nigerians are protected from this kind of scheme. We will do our job—where recovery is possible, we will recover; where prosecution is possible, we will prosecute.
“Overall, we will do our best. Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on the local collaborators while we are partnering INTERPOL to trace the foreign operators,” he said.
Persecondnews recalls that Nigerian and foreign investors on the platform lost about N1.3 trillion.
Amount stolen was put at $847 million.
The investment platform claims to offer 100 per cent returns within 30 days via online trading, but it restricted withdrawals on April 9, 2025.
Users were shocked to find that their accounts balance had been wiped out. The platform curiously asked them to deposit at least $100 to access their funds.
Several new users were said to have signed up in the days after the restricted withdrawals, in the belief that it was only a temporary security glitch and would be resolved in a “matter of days.”
Shortly before locking out its subscribers, the platform sent a message to them stating,:“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required.
“For accounts with funds exceeding $1,000, a deposit of $200 is required. Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews.”
CBEX had reportedly changed its domain name several times between January 2024 and February 1, 2025.
The platform, widely promoted on social media and among peer networks, promised high returns on investment, which induced Nigerians to invest substantial amounts.
The development came a few days after the Securities and Exchange Commission warned Nigerians to stay clear of unregistered trading platforms.
The SEC particularly pointed out that, in accordance with the Investment and Securities Act, 2025, recently signed by President Bola Tinubu, it is now an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.
The Director-General of the commission, Dr. Emomotimi Agama, described the new law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”
Agama said:“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms.
“By virtue of this act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.
“Any business entity planning to set up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions.”
Meanwhile, the crash of the platform has triggered nationwide outrage.
In Ibadan, Oyo State, aggrieved investors stormed the CBEX office in the Oke Ado area, forcing their way into the building and carting away furniture and office equipment in a show of frustration.
Operatives of Nigeria Police and the Western Nigeria Security Network, codenamed “Operation Amotekun”, were subsequently drafted to maintain peace at the CBEX office.
One of our correspondents, who visited the area on Tuesday, observed that patrol vehicles belonging to both the police and Amotekun were strategically stationed in the area.
An eyewitness said:“The crash of the online platform was announced yesterday (Monday). That’s what prompted many of those who invested in the scheme to storm the office to express their displeasure.
“As you can see, some security agents have been stationed at the office to prevent breakdown of law and order.”
In Abuja, the CBEX office located in Jahi district was under lock and key as a private security guard at the gate said access was now strictly limited to prevent possible attacks.
He also said no staff of the company came to work on Tuesday for fear of being attacked by disgruntled investors.
Commenting on the development, a financial analyst and investment banker, Mr. Segun Aremu, blamed it on what he called basic human greed that has forced Nigerians to go into the Ponzi schemes.
“From experience, I have discovered that our investors are oriented in such a way that they want big returns but not big risks. When it comes to this type of scheme, the number one reason is greed. Everyone who has become a victim of the Ponzi scheme is greedy.
“You may say that the economy is tough and people are trying to beat inflation but the truth is, there are verifiable investment products in the market for people. We keep saying these things but people turn a deaf ear. People are bullish without fundamentals.
“Secondly, the higher the returns, the higher the risks involved. Anywhere they are telling you about 100 per cent returns, just know that your money can also go missing. Many Nigerians don’t understand their risk appetite vis-à-vis their investment objective.
“That means when you are saving for school fees, you don’t use such funds for risky investments. Also, a lot of Nigerians don’t see financial advice and we are many in the market.”
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