Court orders arrest of 6 CBEX promoters connected with the alleged $1 billion scam

The Nigerian Federal High Court Headquarters, Abuja, has ordered the arrest of six CBEX promoters over an alleged $1 billion scam targeting Nigerians. The order was granted by Justice Emeka Nwite following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC) against Adefowora Abiodun Olanipekun, Emmanuel Oku, and four other defendants.

Recall that the agency, together with the Securities Exchange Commission (SEC), vowed to clamp down on operators and promoters of CBEX, the fraudulent investment platform that collapsed and carted away about N1.3 trillion.

The EFCC counsel, Fadila Yusuf, told the court on Thursday that the defendants used a company called ST Technologies International Limited, together with some foreigners, to promote CBEX and lure Nigerians to invest, resulting in a $1 billion scam. She asked the court to order the arrest, detention, and prosecution of the suspects under the Administration of Criminal Justice Act.

“An order of this Honourable Court for the issuance of a warrant of arrest for the defendants. An order of this Honourable Court remanding the defendants in the custody of the Complainant/Applicant pending the conclusion of the investigation into the alleged offences and possible prosecution,” Yusuf said in court.

The EFCC counsel added that the accused used ST Technologies to advertise suspicious returns and lure innocent Nigerians to invest in cryptocurrencies on the CBEX platform, with promises of returns of up to 100 per cent. She also explained that the funds were not processed with any Nigerian account, which might cause the investigations extra time to unravel their entire fraudulent activities.

Also Read: CBEX: Influencers, celebrities and bloggers promoting Ponzi schemes risk 10 years in jail- SEC.

During the court application, EFCC highlighted that victims were made to convert their digital assets into the stablecoin USDT, which was then deposited into wallets controlled by the identified suspects. 

Providing additional details, the agency explained that after victims deposited over $1 billion, the CBEX platform became inaccessible, preventing users from withdrawing their investments and revealing the operation to be a scam. While ST Technologies International Limited was registered with the Corporate Affairs Commission (CAC), EFCC claimed the company was not licensed by the SEC to operate as an investment platform.

Upon the agency’s request for an arrest warrant on the 6 suspects, stating that urgent tracking is needed to clamp them down, Justice Nwite found justification in the application and granted the arrest as requested.

The war against CBEX promoters 

As emotions continue to be stretched following the end of the CBEX era, Nigerian security agencies have indicated their willingness to fish out perpetrators of the fraudulent investment scheme that left many Nigerians dejected.

While addressing the public over the massive financial losses, EFCC spokesman Dele Oyewale said the agency is committed to recovering the lost investments in the alleged N1.3 trillion CBEX scam. The spokesman promised that it is working in collaboration with Interpol, the SEC, and other international agencies.

Following the enactment of the Investment and Securities Act (ISA) 2025 in March, SEC affirmed that the law would strengthen its commitment to clean up the investment industry, as the recent revocation of licences, suspension of market operators, and crackdowns on unregistered entities are just the beginning of a broader enforcement strategy. Under the new legislation, promoters of fraudulent schemes will face stringent sanctions, including a minimum fine of N20 million and a 10-year jail term.

The Commission’s DG, Dr. Emomotimi Agama, emphasised that the SEC is capable and ready to tackle Ponzi schemes and will be able to deal with anyone caught in the mess.

“Ponzi schemes will no longer be an avenue for fraudsters to deceive investors. The penalties in the new ISA are stiff enough to deter such activities, and we are committed to implementing them fully. We will shut down their operations and the promoters will be made to face the full weight of the law,” he said. 

Agama stressed that the SEC had dealt with similar schemes before and would continue to do so by leveraging the new powers granted by ISA 2025 to protect investors and develop the market, as the recent collapse of CBEX further underscored the urgency of the situation.

Therein, it warned social media influencers, celebrities, and bloggers against promoting or endorsing ‘just any investment scheme’ and unregistered investment schemes, as violators face possible imprisonment under the ISA 2025.