Three promoters of the collapsed Crypto Bridge Exchange (CBEX), implicated in an alleged $1 billion fraudulent cryptocurrency scheme, have requested bail from the Federal High Court in Abuja. The defendants, Adefowora Abiodun Olanipekun, Avwerosuo Otorudo, and Chukwuebuka Ehirim, are currently detained by the Economic and Financial Crimes Commission (EFCC) following their surrender after being declared wanted in April 2025. Their legal team argues that their prolonged detention without formal charges violates their rights, while the EFCC opposes bail, citing the severity of the alleged fraud.
The CBEX platform, which promised investors 100% returns within 30 days, collapsed in April 2025, leaving thousands of Nigerians unable to access their funds. The EFCC alleges that the scheme, orchestrated through ST Technologies International Limited, defrauded investors of over $1 billion (approximately N1.3 trillion). The case has drawn significant attention due to its scale and the widespread financial devastation it caused, with victims ranging from individual investors to those who liquidated life savings in pursuit of promised profits.
**Court Proceedings and Bail Applications**
During a court session on Wednesday, June 11, 2025, defense counsels Babatunde Busari and Justice Otorudo presented bail applications for their clients, Adefowora Abiodun Olanipekun (1st defendant), Avwerosuo Otorudo (5th defendant), and Chukwuebuka Ehirim (6th defendant). Busari, representing Adefowora, argued that his client had voluntarily surrendered to the EFCC on April 28, 2025, after notifying the agency of his willingness to cooperate on April 22, prior to the court’s issuance of an arrest warrant on April 24. He contended that Adefowora’s detention for over 40 days without charges exceeds the statutory 14-day limit, violating his constitutional rights.
Busari further noted that the EFCC’s counter-affidavit failed to refute Adefowora’s claims, particularly regarding his health condition, which he described as severe. He urged the court to grant bail on liberal terms and compel the EFCC to produce Adefowora in court. Justice Otorudo, representing Otorudo and Ehirim, echoed similar arguments, emphasizing that his clients had also surrendered voluntarily on April 25 and were willing to cooperate with investigations. He argued that the charges, as outlined, were bailable offenses under the Administration of Criminal Justice Act (ACJA).
EFCC counsel Fadila Yusuf opposed the bail applications, asserting that formal charges had already been filed, rendering the bail requests moot. She highlighted the gravity of the alleged fraud, noting that the $1 billion defrauded sum surpasses the annual budgets of several Nigerian states. Yusuf also pointed to ongoing victim petitions, underscoring the case’s severity and the need for continued detention to ensure a thorough investigation. Justice Emeka Nwite adjourned the ruling on the bail applications to June 30, 2025, after hearing arguments from both sides.
**The CBEX Scheme and Its Collapse**
The EFCC’s investigation, initiated in April 2025 following intelligence reports, revealed that CBEX, promoted by ST Technologies International Limited, lured investors with promises of unrealistic returns through aggressive online marketing. Investors were instructed to convert their digital assets into the stablecoin USDT and deposit them into wallets controlled by the suspects. Initially, users could monitor their investments, but access was abruptly cut off after deposits exceeded $1 billion, exposing the platform as a Ponzi scheme.
The collapse began with withdrawal restrictions on April 9, 2025, followed by a suspicious notice requiring users to deposit additional funds—$100 for accounts under $1,000 and $200 for those above—to “verify” their accounts. Many complied, unaware that the platform would soon become inaccessible, wiping out account balances. The EFCC alleges that the scheme, involving foreign collaborators, was not linked to any Nigerian bank accounts, complicating efforts to trace the funds. ST Technologies, while registered with the Corporate Affairs Commission (CAC), lacked Securities and Exchange Commission (SEC) approval to operate as an investment platform, rendering its activities illegal.
The fallout was severe, with over 600,000 Nigerians reportedly affected, some losing their entire savings. Public outrage culminated in the looting of CBEX’s Ibadan office, where frustrated investors stripped assets like air conditioning units in a desperate bid to recoup losses. The EFCC has since collaborated with Interpol and other international agencies to track the funds, which were reportedly diverted to offshore accounts, luxury assets, and shell companies across multiple jurisdictions.
**Regulatory Gaps and SEC’s Response**
The SEC has clarified that CBEX was never registered, emphasizing that registration is a prerequisite for legal operation. Director-General Emomotimi Agama stated that the Investment and Securities Act (ISA) 2025, enacted in March, strengthens the SEC’s authority to crack down on unregistered platforms. The law imposes penalties of up to N20 million and 10 years’ imprisonment for promoting such schemes, targeting influencers and celebrities who endorsed CBEX. Agama warned against amplifying fraudulent platforms, stressing the SEC’s commitment to protecting investors.
The EFCC has also clarified that ST Technologies’ Special Control Unit against Money Laundering (SCUML) certificate, issued under the Money Laundering (Prevention and Prohibition) Act, 2022, does not authorize investment services. This distinction has highlighted regulatory gaps that allowed CBEX to operate unchecked until its collapse. The platform’s name, which mimicked the legitimate China Beijing Equity Exchange, further deceived investors, compounding the scam’s sophistication.
**Broader Implications**
The CBEX scandal underscores Nigeria’s vulnerability to Ponzi schemes, driven by promises of quick wealth amid economic challenges. The EFCC, led by Chairman Ola Olukoyede, has vowed to recover the lost funds, though Olukoyede admitted on May 1, 2025, that full recovery may be “practically impossible” due to the international scope of the fraud. The agency’s collaboration with Interpol and the FBI aims to trace the funds, but the complexity of offshore digital wallets poses significant challenges.
The case has sparked calls for stronger regulatory oversight and public education on investment risks. Critics have questioned the EFCC’s delay in flagging CBEX, noting that the agency’s March 11, 2025, list of 58 Ponzi schemes did not include CBEX, potentially missing an opportunity to warn investors. The SEC’s proactive stance under ISA 2025 signals a shift toward stricter enforcement, but the CBEX collapse highlights the need for preemptive measures to protect Nigeria’s growing digital investment community.
**Looking Ahead**
As the court prepares to rule on the bail applications on June 30, the CBEX case remains a focal point of Nigeria’s fight against financial fraud. The outcome will likely influence public trust in the EFCC and SEC’s ability to address such schemes. For the thousands of affected investors, the hope of recovering their funds rests on the EFCC’s international efforts and the judicial process. Meanwhile, the case serves as a stark reminder of the risks of unregulated digital investments and the importance of due diligence.
Justice Nwite, after reviewing the Commission’s application, ruled in favour of issuing arrest warrants and granted the request to remand the suspects in EFCC custody once apprehended. The EFCC seeks to place the accused persons on Interpol’s Red Notice watchlist as part of broader efforts to recover investors’ funds and prosecute those involved in the alleged scam. Read also: CBEX, affiliates not registered to operate as Digital Assets Exchange -SEC · CBEX, operated by foreign nationals in partnership with Nigerian promoters, collapsed in April 2025. The platform had promised 100% returns within 30 days, drawing in a large number of users who later lost access to their accounts with reports indicating that the scheme
