The Economic and Financial Crimes Commission has launched a comprehensive investigation into the alleged N1.3 trillion cryptocurrency fraud linked to CryptoBank Exchange, a now-defunct digital investment platform. The EFCC is working with the International Criminal Police Organisation (INTERPOL) to track down local and international suspects involved in the massive scam, as revealed by the commission.
CBEX, said to have been run by a group of foreign nationals in collaboration with Nigerian partners, abruptly shut down operations on Monday.
The sudden collapse left thousands of investors locked out of their accounts. Many reported waking up to find their account balances wiped, with the platform demanding further deposits before access could be regained.
Although the exact scale of losses is yet to be officially verified, unconfirmed reports estimate the stolen funds at over $847 million (about N1.3 trillion), with both Nigerian and foreign investors affected. CBEX, which promised 100% returns within 30 days through online trading, began restricting withdrawals on April 9, 2025.
In a move widely seen as a red flag, the platform began demanding deposits of $100 to $200 from users to “verify” accounts before allowing withdrawals — a tactic that lured even more unsuspecting victims before the final crash.
The Securities and Exchange Commission (SEC) recently warned against unregistered trading platforms, emphasizing that the new Investment and Securities Act, 2025 makes it illegal to operate such platforms without proper licensing. SEC Director-General Dr. Emomotimi Agama urged prospective operators to seek registration to avoid sanctions.
Security personnel, including operatives from the Nigeria Police and Operation Amotekun, were swiftly deployed to bring the situation under control.
CBEX heavily marketed itself through social media and peer-to-peer networks, attracting thousands of investors with promises of exceptionally high returns.
Investigations have revealed that the platform changed its domain name multiple times between January 2024 and February 2025 — a move now believed to have been a calculated strategy to evade regulatory oversight.
The CBEX collapse has sparked widespread outrage, with furious investors in Ibadan, Oyo State, vandalizing the company’s office and making away with furniture in protest.
The Securities and Exchange Commission has reiterated the importance of registering trading platforms, emphasizing that operating without proper licensing is illegal under the new Investment and Securities Act, 2025.
“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,” EFCC spokesperson Dele Oyewale said, assuring Nigerians that the commission is committed to exposing and dismantling Ponzi schemes like CBEX.
