The Economic and Financial Crimes Commission (EFCC) has launched a full-scale investigation into the alleged N1.3 trillion fraud involving CryptoBank Exchange (CBEX), a digital investment platform that collapsed earlier this week, leaving thousands of investors stranded. The anti-graft agency is collaborating with Interpol to track down both local and foreign operators behind the suspected Ponzi scheme.
### **Scheme Collapse Triggers Panic**
CBEX, which promised investors 100% returns within 30 days through online trading, abruptly restricted withdrawals on April 9, 2025. Investors were shocked to discover their account balances wiped out, with the platform demanding additional deposits—$100 to $200—to “verify” accounts before allowing access to funds. Unconfirmed reports estimate losses at $847 million (approximately N1.3 trillion) in USDT, a cryptocurrency pegged to the U.S. dollar.
EFCC spokesman Dele Oyewale confirmed to *The PUNCH* that the commission had been investigating CBEX prior to its collapse. “We had our intelligence before the incident. Now that the scheme has folded, we will ensure the major actors and their collaborators are brought to justice,” he said. Oyewale added that the EFCC is working to uncover other fraudulent investment schemes operating across Nigeria.
### **Interpol Partnership and Investor Outcry**
The EFCC has enlisted Interpol to help trace foreign nationals linked to CBEX, while its operatives focus on local collaborators. The platform, heavily promoted on social media, reportedly changed its domain name multiple times between January 2024 and February 2025, raising suspicions about its legitimacy.
The collapse has sparked nationwide outrage. In Ibadan, aggrieved investors stormed CBEX’s Oke Ado office, vandalizing the premises and carting away furniture. Police and Amotekun operatives were deployed to maintain order. Similar tensions flared in Abuja, where CBEX’s Jahi district office remained locked, with private guards stationed to prevent attacks. “No staff came to work today for fear of being targeted,” a security guard told *The PUNCH*.
### **Regulatory Warnings Ignored**
The scam follows recent warnings by the Securities and Exchange Commission (SEC) against unregistered trading platforms. SEC Director-General Dr. Emomotimi Agama emphasized that the newly signed Investment and Securities Act 2025 criminalizes operating forex or digital asset exchanges without registration. “The law ensures investor protection and market confidence,” Agama stated, urging businesses to comply or face sanctions.
### **Broader Crackdown on Fraud**
The EFCC has vowed to intensify its crackdown on investment fraud, noting that CBEX is among 58 flagged schemes. “Where recovery is possible, we will recover; where prosecution is possible, we will prosecute,” Oyewale said. However, the scale of losses has left many investors disillusioned, with some admitting they continued depositing funds even after withdrawal restrictions, hoping the issue was temporary.
