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The Economic and Financial Crimes Commission (EFCC) has been granted the permission to arrest and detain six Crypto Bridge Exchange (CBEX) promoters over allegations of investment fraud to the tune of over one billion dollars.
The order was granted by Justice Emeka Nwite of the Federal High Court in Abuja, who presided over a case in which EFCC counsel Fadila Yusuf made an ex parte application.
In the application, the anti-corruption agency listed Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim as the six suspects.
It sought an order of the court for a warrant of arrest of the defendants.
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The EFCC also prayed the court for “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution.”
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According to Yusuf, the defendants are currently at large, hence the need for a warrant of arrest to capture them for proper investigation and prosecution of this case.
In the supporting affidavit, the commission said a preliminary investigation into the intel revealed that the defendants “using their company ST Technologies International Limited, promoted another company Crypto Bridge Exchange (CBEX) by making adverts and lured unsuspecting members of the public to invest crypto cryptocurrencies on the CBEX investment platform.”
CBEx crashes as thousands of Nigerians lose billions of naira
Reports emerged in early April that Nigerian investors could no longer make withdrawals on the CBEX dashboard, raising concerns about a potential crash similar to a Ponzi scheme.
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After initial denials, thousands of users were subsequently confronted with the reality that their over N30 billion investment may have been wiped out.
Some angry investors later besieged and looted the office of Smart Treasure (ST Team), a CBEX affiliate, in Ibadan, Oyo State.
Meanwhile, the EFCC told the court that the defendants promised an unrealistic return on investment of up to 100 percent.
“The victims were made to convert their digital assets into a stablecoin of USDT for onward deposit into the suspects’ crypto wallet,” said the EFCC counsel.
“The victims were initially given full access to the platform to monitor their investment.
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“Following the deposits valued at over $1 billion by the victims, the CBEX investment platform became inaccessible to them, and they could no longer withdraw from the investment made.
“The victims later discovered that the said scheme is a scam.
“During the course of investigation, it was discovered that the said ST Technologies International Limited, though registered with the Corporate Affairs Commission (CAC), it was not registered with the Securities and Exchange Commission (SEC) for investment purposes.
“It was also discovered during the investigation that the defendants had moved out of their last known address in Lagos and Ogun states.”
The anti-graft commission further explained that obtaining an arrest warrant was necessary to place the suspects on a watch list, enabling authorities to trace and apprehend them to face the charges brought against them.
Justice Nwite granted the EFCC's prayer for arrest and remand, stressing that the order was necessary to enable the agency to apprehend the defendants and conclude its investigation.
“I have listened to the submission of the learned counsel for the applicant,” Nwite said.
“I have also gone through the affidavit evidence with exhibits thereto, 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.”
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