EFCC Arraigns Two CBEX Promoters Over N1.3 Trillion Scam

The Economic and Financial Crimes Commission (EFCC) has once again taken legal action against two promoters of Crypto Bridge Exchange (CBEX) by arraigning them before the Federal High Court in Abuja. This move is part of the ongoing efforts to bring to justice those involved in the CBEX scam and recover the lost funds.

Awerusuo Otorudo and Chukwuebuka Ehirim were brought before Justice Muhammed Umar on Monday, July 7, 2025. They face three amended charges, including obtaining by false pretence, inducement, and misleading the public into a fraudulent investment scheme. The charges allege that between January 2024 and May 2025, the defendants invited the public to deposit money with CBEX, promising returns of up to 88% without obtaining the necessary consent from the Securities and Exchange Commission. This action is in violation of section 96(1) of the Investment and Securities Act 2025, punishable under section 96(5) of the same act.

Another charge states that the defendants, without being authorized to take deposits, invited the public to deposit funds with CBEX through advertisements. This is a violation of Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and is punishable under Section 44(2) of the same act.

Both defendants pleaded not guilty to the charges. The prosecution counsel, Fadila Yusuf, requested that the defendants be remanded to a correctional facility and adjourned the matter for further hearing. The defence counsel, J.A. Otorudo, informed the court of a bail application for the defendants. However, the EFCC counsel objected to the bail application, urging that the defendants be remanded in a correctional centre until further court proceedings.

The presiding judge adjourned the case to July 18, 2025, for a ruling on the bail application and remanded the defendants at Kuje Correctional Centre, as requested by the defence counsel.

This case is part of the EFCC’s broader efforts to apprehend CBEX promoters following significant financial losses suffered by Nigerians. The collapse of the investment platform led to a loss of about N1.3 trillion in crypto trading, affecting over 600,000 individuals. The platform, which began operations in November 2024, offered an enticing 100% return on investment within 30 days. Investigations revealed that CBEX received registration approval from the Corporate Affairs Commission and the EFCC’s Special Control Unit Against Money Laundering but failed to register with the Securities and Exchange Commission.

In a related case, the Federal High Court in Abuja refused to grant bail to six detained promoters of CBEX on June 30. The defendants, including Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim, were arrested on April 24, 2025, in connection with an alleged fraud exceeding $1 billion. The court found the case against the defendants to be strong based on the affidavit evidence presented.

As efforts to regain lost funds continue, there have been rumours that the platform may resurface. Reports suggest that CBEX is demanding processing fees from investors before allowing withdrawals, with $200 for accounts holding more than $1,000 and $100 for smaller balances.