Nigeria’s EFCC Cracks Down: Six CBEX Crypto Promoters Face Arrest

Nigeria’s Economic and Financial Crimes Commission (EFCC) just handed crypto scammers a one-way ticket to accountability. Six promoters of CBEX—yet another ’too-good-to-be-true’ exchange—are now in the crosshairs.

Regulators worldwide are finally waking up to the crypto Wild West. Nigeria’s move follows a global pattern: promise moon shots, deliver exit scams—then face the music. The EFCC’s dragnet tightens as retail investors (still waiting for their Lambos) cheer from the sidelines.

Another day, another crypto scheme learning the hard way: when the ’free money’ stops flowing, handcuffs start clicking. Just ask the geniuses behind CBEX—if you can find them before the Feds do.

Defendants used their company to promote CBEX through ads 

In the document supporting the motion, the EFCC said that the preliminary investigation into the information showed that the defendants used their company, ST Technologies International Limited, to promote another CBEX by making ads and misleading people into investing in crypto coins on the CBEX investment platform.

The EFCC said that the defendants promised an unrealistic return on investment of up to 100% in their ads. At first, the victims had full access to the platform to keep an eye on their money. But later on, they lost access to the CBEX investment site and could no longer get their money back from the investments they made.

“The victims were made to convert their digital assets into a stablecoin of USDT for onward deposit into the suspects’ crypto wallet,” Yusuf said.

In addition, during the investigation, it was found that ST Technologies International Limited was listed with the Corporate Affairs Commission (CAC). However, it was not listed with the Securities and Exchange Commission (SEC) for investment purposes.

It was also found that the suspects had moved out of their last known address in Lagos and Ogun states. Therefore, the anti-graft office said that they needed to get an arrest warrant in order to put the defendants on a watch list. This would allow the authorities to trace and apprehend the suspects to face the charges brought against them.

Emeka Nwite, in his ruling said, “I have listened to the submission of learned counsel for the applicant. I have also examined the affidavit evidence and the exhibits attached, along with the written address. I am of the view, and I so hold, that the application is meritorious. Consequently, the application is granted as prayed.”

Nigeria SEC signs new rules as crypto scams are identified to be more professional

Nigeria’s SEC made a new rule, according to the ISA 2025 that President Bola Tinubu signed, it is now illegal for any organization to run an online forex trading platform or offer related services without first registering with the commission.

In a statement, it said, “By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.”

In the US FBI’s Internet Crime Complaint Center (IC3), the 2024 report draws a harsh picture. Last year, Americans reported more than 859,000 cases of hacking, which cost a record $16.6 billion, which is 33% more than in 2023.

Online fraud has grown into a global, industrial-scale business, with $16.6 billion in losses and more than 2,000 complaints on average daily. They have advanced past one-time fake emails. 

There are now international scam groups, identity theft powered by AI, and investment schemes that look like VC-backed startups. There are also specialized “customer service” reps, social media teams, and even performance bonuses for scammers who make a certain amount of money. 

Seniors, crypto investors, and even real estate buyers are now on the frontlines of digital deception. 

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now