- Briton, Four Others Under Investigation
The Economic and Financial Crimes Commission (EFCC) has arrested two individuals in connection with an alleged N1.3 trillion fraud linked to the cryptocurrency platform, Crypto Bridge Exchange (CBEX).
The anti-graft agency is currently probing a network of suspects, including four Nigerians—two of whom are siblings—and a British national. While none of their names have been disclosed, the EFCC confirmed that the investigation is still in its early stages.
According to a senior EFCC official, operatives worked through the public holiday on Friday to secure the arrests and commence interrogation. “This is a multi-layered investigation into how CBEX entered Nigeria’s digital asset space,” the source said.
EFCC Chairman, Ola Olukoyede, who just returned to the country, is personally overseeing the case. “We are not rushing to name suspects to avoid wrongful profiling. However, all individuals linked to the platform are under surveillance,” the official added.
The probe is examining the company’s structure, its promoters, financiers, associated shell companies, their registration processes, and any roles played by financial institutions and the Corporate Affairs Commission (CAC).
When asked why the identities of the two arrested suspects were withheld, the source explained: “It’s still the preliminary phase. We don’t want to jeopardize the process. There are claims of N1.3 trillion in investor losses, and we need to verify every detail.”
Meanwhile, Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, stated that CBEX was never registered with the regulatory body, making any formal intervention impossible.
Speaking during an interview on Monday, Agama clarified that SEC only regulates entities listed in its database. “Regulation begins with registration. If a company isn’t registered, we can’t regulate it,” he said.
Dismissing claims that CBEX had applied for SEC licensing, Agama described such assertions as “totally untrue in capital letters.” He warned that operating without prior approval is a major red flag.
He further explained that registration with the CAC does not equate to approval by the SEC, adding that some entities exploit loopholes by registering under misleading categories.
“It’s unfortunate that Nigerians are losing money this way,” Agama lamented. “But let’s be clear: SEC cannot be blamed for platforms operating illegally.”
He urged Nigerians to verify the legitimacy of any investment opportunity before committing funds. “If unsure, consult a lawyer, financial adviser, or stockbroker,” he advised.
To enhance public awareness, Agama noted that the commission has launched a podcast and increased its outreach efforts across the country.
On restitution, he assured that the commission is working with relevant agencies to recover lost funds and prosecute those responsible. “Whatever we can recover will be returned to the investors,” he said.
Agama also warned social media influencers and bloggers against promoting fraudulent investment schemes. Under the new Investment and Securities Act (ISA) 2025, violators face penalties of up to N20 million and 10 years in prison.
“If you aid and abet these illegal platforms, be ready to face the law,” he warned.
