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Just in: Alleged $1bln fraud: Court grants EFCC authority to arrest, detain six CBEX staff

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By Daniel Okejeme

A glimmer of hope has emerged for investors who fell victim to the now-defunct CBEX Ponzi scheme as the Federal High Court in Abuja has authorized the Economic and Financial Crimes Commission (EFCC) to apprehend and hold six individuals who allegedly orchestrated a staggering $1 billion investment fraud.

This significant development came after EFCC counsel Fadila Yusuf presented an ex parte motion to Justice Emeka Nwite.

The court order specifies that the detention of the promoters will continue until the ongoing investigation into the alleged crimes is concluded, paving the way for potential prosecution.

He said: “I have listened to the submission of the learner counsel for the applicant (EFCC). I have also gone through the affidavit evidence with exhibits thereto along with the written address.

“I am of the view, and I so hold, that the application is meritorious. Consequently, the application is granted as prayed.”

Persecondnews reports that the six suspects, identified as 1st to 6th defendants, are Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.

The EFCC’s ex parte motion, dated and filed on April 23 by Yusuf, sought two prayers, including a warrant of arrest for the defendants.

The commission further urged the court for “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution”.

Citing four grounds, the lawyer argued that the EFCC has a statutory mandate to prevent and detect financial crimes through investigation.

She said the office of the commission’s chairman received intelligence regarding the defendants’ alleged involvement in various criminal offences, which, she argued, necessitated the applicant’s investigation and enforcement of the law.

Yusuf said that “the defendants are at large, and a warrant of arrest is required to arrest the defendants for proper investigation and prosecution of this case.”

According to the affidavit supporting the motion, the EFCC said sometime in April 2025, it received intel concerning an alleged investment scheme fraud against the defendants.

It alleged that the defendants and their company, ST Technologies International Limited, in collaboration with CBEX, perpetrated the fraud, prompting the agency to assign the case to its Cybercrimes Section for investigation.

The agency said the preliminary investigation into the intel revealed the following:

“That Messrs Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko and Seyi Oloyede, using their company ST Technologies International Limited, promoted another company, Crypto Bridge Exchange (CBEX), by making adverts and lured unsuspecting members of public to invest in cryptocurrencies on CBEX investment platform.”

The EFCC alleged that the defendants promised an unrealistic return on investment of up to 100%.

It said: “That the victims were made to convert their digital assets into a stablecoin, USDT, for onwards deposit into the suspect’s crypto wallet. That the victims were initially given full access to the platform to monitor their investment.

“Following deposits valued at over 1 billion dollars by the victims, the CBEX investment platform became inaccessible to them, and they could no longer withdraw from the investment made.

“That the victims later discovered that the said scheme is a scam. That during the course of the investigation, it was discovered that the said ST Technologies International Limited, though registered with the Corporate Affairs Commission (CAC), was not registered with the Securities and Exchange Commission (SEC) for investment purposes.

“That it was also discovered during the investigation that the defendants had moved out of their last known address in Lagos and Ogun States.”

The agency said that a warrant of arrest was necessary to place the defendants on a red notice list, enabling their tracing and arrest to face charges.

It reported that its investigation uncovered a prima facie case of investment scam against the defendants, and argued that granting the application would serve the interests of justice.

CBEX is a digital asset trading platform, launched in Nigeria in July 2024, that promised investors an unusually high 100% return on investment within just 30 days.

It claimed to utilize artificial intelligence for trading, but experts and victims later exposed the displayed trading activity and profits as fabricated.

CBEX sustained its illusion of profitability by paying early investors with funds from newer ones, while aggressively incentivizing referrals through tiered bonuses and rewards. Some users even claimed they had to recruit at least 12 people to unlock profit withdrawals.

Withdrawal issues emerged on April 10, 2025, and CBEX’s collapse was widely acknowledged by April 15. The platform attempted to reassure users on social media, but locked its Telegram channels.

The collapse sparked intense outrage, with videos emerging of angry investors storming CBEX offices in Ibadan and Lagos.

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