EFCC Collaborates with INTERPOL to Investigate N1.3tn CryptoBank Exchange Fraud

Published

4 days ago

16/04/2025

The Economic and Financial Crimes Commission (EFCC) has launched an investigation into the alleged fraud amounting to N1.3 trillion, linked to the operations of a digital investment platform, CryptoBank Exchange (CBEX).

The platform, which involved a collaboration between foreign nationals and Nigerian partners, reportedly shut down on Monday, leaving thousands of investors unable to access their funds.

EFCC spokesman, Dele Oyewale, confirmed to The PUNCH that the commission was already investigating CBEX before its collapse, with plans to collaborate with the International Criminal Police Organisation (INTERPOL) to track down the perpetrators.

“We had already gathered intelligence on the scheme prior to its collapse,” Oyewale explained. “Now that the platform has shut down, we are working to apprehend both the local and international individuals behind the fraud.”

The EFCC is focusing on dismantling fraudulent investment schemes and ensuring Nigerian investors are protected from such schemes. “We have been actively investigating other Ponzi schemes operating across the country. Our aim is to recover stolen funds wherever possible and prosecute those responsible for such scams,” Oyewale added.

The PUNCH could not independently verify the total value of the fraud, though initial reports indicate that the combined losses could amount to about $847 million (N1.3 trillion) in USDT.

The scheme was said to promise a 100% return on investment in just 30 days, but began restricting withdrawals as of April 9, 2025.

Investors discovered that their account balances were wiped out, and the platform bizarrely required them to deposit at least $100 to retrieve their funds.

Several new users, unaware of the withdrawal restrictions, continued to sign up in the belief that the issue would be resolved shortly. Just before locking users out, the platform sent messages requiring verification steps and deposits of $100 for smaller accounts and $200 for larger ones.

CBEX had reportedly changed its domain name multiple times between January 2024 and February 2025, raising suspicions of fraudulent activity. The platform had been widely promoted on social media, attracting Nigerians to invest large sums in hopes of high returns.

The scheme’s collapse came shortly after the Securities and Exchange Commission (SEC) issued a warning to Nigerians, cautioning against unregistered trading platforms.

In a recent announcement, the SEC emphasized the legal requirement for any forex trading platform to register with the commission, in line with the new Investment and Securities Act 2025, signed into law by President Bola Tinubu.

The act makes it illegal for any entity to operate a foreign exchange platform without SEC registration.
The SEC’s Director-General, Dr. Emomotimi Agama, lauded the new law, stating, “The ISA 2025 ensures that unregulated platforms like CBEX are held accountable, offering clearer investor protection and enhancing market trust.”

The collapse of CBEX has sparked protests from investors across the country. In Ibadan, Oyo State, frustrated investors stormed the platform’s office in the Oke Ado area, damaging office property in their outburst.

Security forces, including the police and Operation Amotekun, were deployed to maintain order.
An eyewitness described the situation, saying, “When the crash was announced, many investors rushed to the office to express their anger. Security personnel were positioned to prevent any chaos.”

Similarly, in Abuja, the CBEX office in the Jahi district was found to be under lock and key on Tuesday, with no staff appearing for work. A security guard revealed that the office had been closed due to fears of an attack by disgruntled investors.

One investor, who chose to remain anonymous, shared their shock at losing $10,000 in the scheme. “I was introduced by a friend who showed me their earnings, and I believed the platform was legitimate,” they explained. “Now, I have lost everything, and I am asking the authorities to help recover my funds.”

Another investor lamented the loss of $8,000 from funds they had introduced to the platform. “I feel fortunate not to have lost more, but I am deeply concerned for the friends I encouraged to invest,” they said.

The grief was also evident on social media, with individuals like #the_real_aduke sharing their losses. “I lost $1,000, which was meant for my wedding. I don’t know how to tell my fiancé,” she posted on Instagram.

In a Facebook post, Chinenye Nduka spoke about her brother’s situation, revealing that he had invested his school fees and was now unable to face their parents. “My brother invested his school fees and now can’t even face my parents. This is a harsh reality.”

The Minister of the Federal Capital Territory’s spokesman, Lere Olayinka, criticized the victims’ greed, calling on the police and EFCC to intensify efforts to investigate the scheme. “I don’t have sympathy for greed and foolishness,” Olayinka stated in a post on X (formerly Twitter).

In March, the EFCC had already issued a warning about 58 companies involved in similar fraudulent activities. According to the commission, some of these companies have already been prosecuted, with five convicted and others awaiting further legal action.

Among the implicated companies were Wales Kingdom Capital, Bethseida Group, AQM Capital, and Titan Multibusiness Investment Limited, all of which promised high returns in sectors like agriculture, real estate, and forex trading.

The EFCC reiterated its warning to Nigerians, urging them to verify investment opportunities with regulatory bodies like the Central Bank of Nigeria (CBN) and the SEC before committing funds.

“We are committed to protecting the public from fraudulent operators and ensuring a safe economic environment,” Oyewale concluded.

Experts weighed in on the collapse, with financial educator Kelechi Godfrey explaining that many Nigerians fall prey to schemes promising easy returns. “Greed is a major factor,” Godfrey stated.

“We want quick gains without considering the risks involved. Always do your research before investing, especially when returns seem too good to be true.”

Financial analyst Segun Aremu echoed these sentiments, warning that the higher the returns, the greater the risk. “People often ignore fundamental investment principles in their pursuit of quick profits. This is a clear example of how unchecked greed leads to devastating financial losses.”

As Nigerians continue to reel from the fallout of the CBEX scam, experts hope that this experience will serve as a cautionary tale to prevent future victims of similar schemes.