Two individuals identified as operators of the controversial Crypto Bridge Exchange (CBEX) investment platform, Avwerosuo Otorudo and Chukwuebuka Ehirim, were arraigned by the Economic and Financial Crimes Commission (EFCC) on Monday before Justice Mohammed Umar of the Federal High Court in Abuja.
The defendants face allegations of operating illegal financial schemes and unlicensed investment activities that reportedly defrauded unsuspecting Nigerians of over $1 billion.
Their arraignment followed the filing of an amended three-count charge by the EFCC, marked FHC/ABJ/CR/216/2025, which accuses them of soliciting and accepting public funds under the pretext of promising exaggerated investment returns—allegedly up to 88%—without approval or licensing from the relevant regulatory bodies.
During proceedings, EFCC counsel Fadila Yusuf sought the court’s permission to replace the initial charge with the amended one filed on July 7. Upon approval, the new charges were read, and the defendants pleaded not guilty.
Yusuf then applied for their remand in a correctional centre pending trial, while their legal counsel, Justice Otorudo, presented a bail application previously filed on June 30.
Otorudo argued that his clients had not obstructed investigations and voluntarily submitted themselves to the EFCC when they learned they were wanted. He further pointed out that the charges they face are bailable and do not currently involve evidence of specific individuals depositing funds.
He also criticized what he described as unsubstantiated claims on the EFCC’s website, alleging the involvement of over $1 billion, when no such charge had been presented before the court.
In response, Yusuf opposed the bail application, emphasizing the seriousness of the alleged crimes. She argued that although the defendants eventually surrendered, it was only after they were compelled by a court order, and their flight risk remains high given that other suspects are still at large.
Despite a plea by the defence for the accused to be held in EFCC custody, Justice Umar ordered their remand at Kuje Correctional Centre and adjourned the case until July 18, when a ruling on the bail application will be delivered.
The first charge accuses the defendants of soliciting public investments through CBEX between January 2024 and May 2025 without authorization from the Securities and Exchange Commission (SEC), thereby violating Section 1 of the Investment and Securities Act, 2025, and punishable under Section 96(5).
The second charge alleges they invited public deposits through advertisements while not being a licensed financial institution, contrary to Section 44(1) of the Banks and Other Financial Institutions Act (BOFIA), 2020. The third charge involves operating an investment scheme without a valid license, a breach of Sections 57(1) and (2) of BOFIA.
This case is an offshoot of earlier rulings, including one by Justice Emeka Nwite on April 24, which permitted the EFCC to arrest and detain six CBEX operators over a suspected investment scam. Among those listed were Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, and the two defendants now arraigned.
According to documents filed by the EFCC, ST Technologies International Limited, which allegedly fronts CBEX, enticed the public through online advertisements that promised implausible returns of up to 100%.
Victims reportedly converted their digital assets into USDT and deposited them into CBEX wallets. They were initially able to monitor their investments on the platform until access was later restricted, at which point they realized the platform was a scam.
Further investigation by the EFCC revealed that while ST Technologies was registered with the Corporate Affairs Commission (CAC), it was not licensed by the SEC to offer investment services. Moreover, the defendants reportedly vacated their last known addresses in Lagos and Ogun states, prompting the need for an arrest warrant and inclusion on the red watch list.
The EFCC maintains that there is enough evidence for a prima facie case of investment fraud, stating that the continued detention and prosecution of the defendants is essential to ensure justice for the alleged victims.
What You Should Know
Crypto Bridge Exchange (CBEX) is at the centre of a high-profile investment scam investigation led by the EFCC, with defendants accused of defrauding Nigerians through unlicensed financial schemes. The case underscores ongoing challenges in regulating cryptocurrency-linked platforms in Nigeria.
