The Economic and Financial Crimes Commission (EFCC) has alleged that the promoters of the fraudulent Crypto Bridge Exchange (CBEX) disabled withdrawals on the platform when investors deposited up to $1 billion.
This was contained in an affidavit filed in support of an exparte application to arrest six Nigerian promoters of the fraudulent platform.
The Federal High Court sitting in Abuja, before which the application was made, agreed that the suspects be apprehended to facilitate further investigation and prosecution.
Justice Emeka Nwite granted the order on Thursday after the ex parte motion was formally moved by by anti-graft agency counsel, Fadila Yusuf.
The individuals named in the motion are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
They are accused of orchestrating a fraudulent investment operation via CBEX, a crypto trading platform.
The EFCC’s application, filed on April 23, requested arrest warrants for the six suspects and sought permission to detain them pending the conclusion of investigations and possible prosecution.
Yusuf told the court that the EFCC received intelligence linking the suspects to a complex cryptocurrency scam.
They allegedly used a registered company, ST Technologies International Limited, to market the CBEX platform, enticing the public with unrealistic promises of up to 100% returns on investments.
“The defendants are currently at large. We require arrest warrants to bring them in for questioning and further investigation,” Yusuf stated.
According to the supporting affidavit, investors were urged to convert their crypto assets into the stablecoin USDT (Tether) and deposit them into wallets controlled by the suspects.
“Initially, users could monitor their investments through the CBEX platform.
However, once the platform received over $1 billion in deposits, it became inaccessible, and withdrawal options were disabled, revealing it as a scam,” the document stated.
Although ST Technologies is registered with the Corporate Affairs Commission, it lacks the necessary approval from the Securities and Exchange Commission to provide investment services, the EFCC said.
The suspects have reportedly abandoned their known addresses in Lagos and Ogun States.
The anti-graft agency has requested their placement on a red watch list to aid in their apprehension.
EFCC emphasised that “a prima facie case of investment fraud has been established,” and the arrest is necessary to ensure justice is served.
In his ruling, Justice Nwite stated: “I have reviewed the submissions and supporting documents provided by the applicant. I find merit in the application and hereby grant it as prayed.”
The EFCC is now legally empowered to arrest and detain the six suspects as investigations continue.
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