The Federal High Court in Abuja has ordered the arrest and detention of six people linked to the CBEX cryptocurrency investment fraud. The Economic and Financial Crimes Commission (EFCC) got the order on Thursday after filing an ex parte motion. Justice Emeka Nwite granted the request made by EFCC’s counsel, Fadila Yusuf.
The suspects are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. They allegedly operated a fraudulent scheme through Crypto Bridge Exchange (CBEX). The EFCC said they lured the public with false promises of 100% returns on cryptocurrency investments.
EFCC Says CBEX Platform Used Fake Returns to Defraud Investors
According to the EFCC, the suspects used a company named ST Technologies International Limited to promote CBEX. They convinced investors to convert their crypto assets to USDT (Tether) and transfer the funds to wallets controlled by the suspects.
The fraud started small but grew quickly. At first, investors could view their earnings on the CBEX platform. But once the deposits passed $1 billion, the platform became inaccessible. Withdrawals were blocked, and the site vanished.
The EFCC revealed that although ST Technologies was registered with the Corporate Affairs Commission (CAC), it had no licence from the Securities and Exchange Commission (SEC) to offer investment services. This means they were operating illegally.
EFCC Declares CBEX Operators Wanted As Scam Unfolds
The EFCC said the suspects have gone into hiding. They reportedly left their homes in Lagos and Ogun states. The agency has asked for them to be placed on a red alert list to help track and arrest them.
“The defendants are at large, and a warrant of arrest is required to bring them in for proper investigation and prosecution,” Fadila Yusuf told the court.
In a sworn affidavit, the EFCC said the case is strong and supported by evidence. “The investigation has established a prima facie case of an investment scam. Granting this application is in the interest of justice,” the EFCC added.
Justice Nwite agreed with the EFCC. He said: “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.”
The court’s ruling now gives the EFCC power to arrest and detain the CBEX promoters as investigations continue.
