Abuja, Nigeria – The Economic and Financial Crimes Commission (EFCC) has commenced a full-scale investigation into a multi-billion-naira cryptocurrency scam allegedly perpetrated by the operators of CryptoBank Exchange (CBEX)—a controversial blockchain-based investment platform accused of defrauding investors of over ₦1.3 trillion in USDT (Tether).
CBEX, touted as a high-yield crypto trading platform, abruptly shut down on Monday, triggering financial panic among thousands of retail and institutional investors nationwide. The exchange, which promised 100% ROI within 30 days through automated crypto arbitrage and AI-powered trading bots, allegedly restricted withdrawals on April 9, 2025, before going dark.
International Cybercrime Collaboration Underway
EFCC spokesperson Dele Oyewale confirmed the commission’s active collaboration with the International Criminal Police Organization (INTERPOL) and other global law enforcement agencies to trace and apprehend the foreign nationals and Nigerian collaborators behind the Ponzi-style scheme.
“We had actionable intelligence before the collapse. Now, we are fast-tracking the arrest of both local and offshore conspirators,” Oyewale stated.
$847 Million in Digital Asset Losses Reported
Though official figures are pending, cryptocurrency analytics sources estimate that victims lost over $847 million in decentralized digital assets, mostly stablecoins like USDT. The magnitude of this crypto heist places it among the largest DeFi (Decentralized Finance) frauds in Nigerian history.
Victims Lured by False Promises of Passive Income and Financial Freedom
CBEX heavily marketed itself across social media platforms, leveraging influencer marketing and affiliate referral programs to drive mass adoption. Many users were reportedly required to deposit an additional $100–$200 to “verify” their accounts for future withdrawals—a classic red flag in fraudulent investment schemes.
“They wiped my account clean and then asked for another $100 to access my own funds,” a distressed investor told The Bureau.
Securities and Exchange Commission Raises Red Flag
Just days before the collapse, the Securities and Exchange Commission (SEC) had warned the public to avoid unregistered trading platforms, citing Section 94 of the newly enacted Investment and Securities Act 2025.
SEC Director-General Dr. Emomotimi Agama emphasized that it is now a federal offense for any platform to operate online forex or crypto investment services without proper registration.
“This is a pivotal step in protecting investors and maintaining regulatory oversight in the rapidly evolving digital assets ecosystem,” Agama said.
Panic, Protests, and Police Intervention Across Nigeria
In Oyo State, angry investors stormed the CBEX office in Ibadan’s Oke Ado area, vandalizing property in a desperate bid to recover their locked-in capital. Law enforcement, including Operation Amotekun, was deployed to restore order.
Similarly, the CBEX office in Jahi, Abuja, was placed under heavy security surveillance after reports of potential investor riots. Staff were instructed to stay away “for safety reasons,” according to a private security operative at the site.
Heart-Wrenching Losses and Financial Devastation
Social media has been flooded with testimonials from victims, including a woman who lost her bridal savings of $1,000, and another whose brother used his tuition fees to invest in the platform. One businessman lamented introducing three friends who collectively lost $8,000.
“I feel like I set my friends up for financial ruin,” he said, holding back tears.
EFCC Intensifies Crackdown on High-Risk Investment Platforms
The CBEX saga adds to a growing list of fraudulent investment schemes under EFCC scrutiny. In March, the commission released a list of 58 companies implicated in unauthorized investment operations, including Wales Kingdom Capital, Bethseida Group, and Titan Multibusiness Investment Limited.
“These entities promised quick cash, forex profits, and agricultural investment returns, without any regulatory compliance or asset-backed security,” the EFCC warned.
Investor Advisory: Conduct Due Diligence Before Investing
EFCC’s Oyewale advised the public to always verify platforms through the Central Bank of Nigeria (CBN) and SEC before committing funds.
“Any investment opportunity promising unrealistic ROI, lacks regulatory licensing, or requires deposit before withdrawal is likely a scam,” he added.
Financial experts are also calling on Nigerians to develop investment literacy, practice capital risk management, and consult licensed financial advisors before engaging in any high-yield digital asset investment.
Analyst Insights: “Greed, FOMO, and Lack of Financial Education”
Kelechi Godfrey, a banker and financial educator, criticized the public’s tendency to fall for get-rich-quick crypto scams.
“People were promised 100% returns in 30 days through AI crypto bots. That’s a fantasy. No real financial product offers that kind of return without massive risk,” he said.
Godfrey added that the $847 million loss could have stimulated economic growth if invested in regulated financial instruments, real estate portfolios, or mutual funds.
The Cost of Ignoring Financial Regulation
The CBEX collapse is a stark reminder of the importance of regulatory compliance, investor due diligence, and the need for stronger crypto fraud enforcement mechanisms in Nigeria’s evolving fintech and blockchain ecosystem.
As EFCC and INTERPOL dig deeper into what is shaping up to be one of the most devastating crypto investment frauds in recent history, one truth becomes clear—greed, ignorance, and lack of regulation create a perfect storm for financial disaster.
