Mathew Amaechi
In a ruling that could send shocks through Nigeria’s burgeoning cryptocurrency market, the Federal High Court in Abuja has approved the Economic and Financial Crimes Commission’s (EFCC) request to arrest and detain six promoters of the Crypto Bridge Exchange (CBEX).
The arrest warrants were issued amid allegations of a massive investment fraud scheme—purportedly siphoning over $1 billion from unsuspecting investors.
Justice Emeka Nwite, presiding over the case on Thursday, granted the EFCC’s ex parte motion after examining the detailed affidavit evidence presented by the commission’s lawyer, Fadila Yusuf. The motion, filed on April 23, sought two primary directives: first, the issuance of arrest warrants for the six suspects; and second, an order remanding them into EFCC custody pending further investigation and potential charges. “The defendants are at large, and a warrant of arrest is required to bring them in for proper investigation and prosecution,” Yusuf stated in her submission.
The individuals named in the motion are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
According to the affidavit, information received in April 2025 linked the suspects to a sophisticated fraudulent investment scheme. Central to the allegations is the operation of a platform under the guise of CBEX, through which the promoters’ lured investors by promising exceptionally high returns, reaching up to 100%.
Victims were required to convert their digital assets into USDT—a stablecoin— and deposit these funds into cryptocurrency wallets controlled by the suspects. Initial confidence was bolstered as investors were able to monitor their investments on the CBEX platform. However, once the fraudulent activity had amassed over $1 billion, the platform was abruptly shut down, leaving investors unable to access their funds.
The EFCC’s affidavit also highlighted that the fraudulent scheme was purportedly carried out in collaboration with ST Technologies International Limited, a company registered with the Corporate Affairs Commission. Despite this registration, the firm had not been licensed by the Securities and Exchange Commission to operate any investment business. This regulatory gap has raised serious questions about the oversight and governance of emerging digital investment schemes in Nigeria.
Further compounding the EFCC’s challenges is the fact that the suspects have reportedly abandoned their known addresses in Lagos and Ogun states. The commission stressed that placing these individuals on a red watch list through immediate arrest was necessary to ensure they faced justice, rather than evading accountability.
After considering the submissions and reviewing extensive affidavit evidence and exhibits, Justice Nwite ruled in favor of the EFCC, stating, “I have listened to the submission of learned counsel for the applicant. I have also examined the affidavit evidence and the exhibits attached, 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.” This decisive order emphasized the seriousness with which the judiciary is treating high-profile financial frauds within the cryptocurrency domain.
With the court’s approval, the EFCC has now secured the legal backing required to execute swift arrests of the six CBEX promoters as investigations continue. Legal experts and market analysts are closely watching the case, noting that its outcome could set a precedent for future regulatory and enforcement actions in the fast-evolving realm of digital currencies.
As the EFCC pushes forward with its investigations, the crypto community and investors alike are left to wonder what further regulatory reforms will emerge to protect against similar fraudulent schemes in the future. The coming weeks will likely be pivotal as more details surface regarding this staggering fraud and its implications for both the cryptocurrency market and broader financial regulations in Nigeria.
