The Economic and Financial Crimes Commission (EFCC) has launched a sweeping investigation into the alleged N1.3 trillion fraud involving the now-collapsed digital investment platform, CryptoBank Exchange (CBEX), in partnership with the International Criminal Police Organisation (INTERPOL).
The probe follows the sudden shutdown of CBEX, which left thousands of Nigerian and foreign investors stranded, unable to access funds they had poured into the platform in exchange for promised high returns.
EFCC spokesperson Dele Oyewale, in a statement on Tuesday, confirmed that the anti-graft agency was already tracking the activities of CBEX prior to its collapse, and is now accelerating efforts to apprehend the platform’s local and international operators.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” Oyewale said. “Where recovery is possible, we will recover; where prosecution is possible, we will prosecute.”
Unconfirmed reports put the total investor losses at $847 million, approximately N1.3 trillion in USDT, although The PUNCH could not independently verify this figure.
The platform, run by foreign nationals and Nigerian collaborators, promised 100% returns within 30 days but began restricting withdrawals on April 9, 2025. Investors reported that their account balances were wiped out, and they were asked to make fresh deposits to access their funds—an action widely seen as a red flag before the platform went dark.
In the days following its collapse, protests erupted in cities like Ibadan and Abuja. Angry investors stormed CBEX offices, seizing office equipment in frustration. Security operatives from the Nigeria Police Force and Amotekun were deployed to restore order.
A visit to the company’s Abuja office in the Jahi district on Tuesday found the facility under lock and key. A private guard said staff did not report to work for fear of reprisal attacks.
The emotional toll has been severe. A bride-to-be said she lost $1,000 saved for her wedding. A student reportedly used his tuition fees, while several others recounted similar losses. One businessman said he introduced three friends who invested $8,000 in total.
The Securities and Exchange Commission (SEC) had recently issued warnings against unregistered trading platforms. Under the new Investment and Securities Act (ISA) 2025, it is now a criminal offence to operate online forex trading services without SEC registration.
SEC Director-General, Dr. Emomotimi Agama, emphasized that the Act equips regulators with tools to oversee emerging sectors like digital assets. “It is an offence in Nigeria for any entity not registered by the commission to carry out the business of online forex trading,” he stated.
This incident mirrors previous Ponzi-style schemes exposed by the EFCC. In March, the agency listed 58 companies under investigation for illegal investment operations. Some of these companies, like Wales Kingdom Capital and AQM Capital Limited, have already faced prosecution.
Oyewale urged the public to remain vigilant and verify investment opportunities through the Central Bank of Nigeria and SEC. “The EFCC remains committed to safeguarding the public from predatory operators,” he said.
As the investigation into CBEX deepens, many are left questioning how such an expansive fraud could go unnoticed. Financial expert Kelechi Godfrey said that despite warning signs, greed and ignorance kept investors hooked. “They promised 100% returns in 30 days—clearly unrealistic. But people still went in,” he noted.
Authorities have called on victims to come forward with evidence to assist in ongoing investigations and potential recovery efforts.