The Federal High Court Headquarters in Abuja has ordered the arrest of six individuals believed to be key promoters of CBEX, an investment platform accused of defrauding Nigerians of approximately $1 billion.
Justice Emeka Nwite granted the arrest warrant following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC).
The EFCC’s motion named Adefowora Abiodun Olanipekun, Emmanuel Oku, and four other individuals as defendants in the alleged massive investment scam. This action follows previous warnings issued by the EFCC and the Securities Exchange Commission (SEC) against CBEX and its promoters after the platform abruptly collapsed, allegedly absconding with about N1.3 trillion in investors’ funds.
During Thursday’s court proceedings, EFCC counsel Fadila Yusuf informed the court that the defendants, in collaboration with foreign nationals, utilized a company identified as ST Technologies International Limited to promote CBEX and entice Nigerians to invest. This alleged scheme ultimately resulted in losses totaling $1 billion for unsuspecting investors. Yusuf requested the court to issue warrants for the arrest, detention, and subsequent prosecution of the accused under the Administration of Criminal Justice Act.
Specifically, Yusuf sought “an order of this Honourable Court for the issuance of a warrant of arrest for the defendants” and “an order of this Honourable Court remanding the defendants in the custody of the Complainant/Applicant pending the conclusion of the investigation into the alleged offences and possible prosecution.”
The EFCC counsel further detailed how ST Technologies allegedly advertised unrealistic returns, promising up to 100 percent returns to lure Nigerians into investing in cryptocurrencies through the CBEX platform. She also pointed out that the invested funds were not processed through Nigerian accounts, a factor that may complicate and prolong the ongoing investigation into the full scope of their alleged fraudulent activities.
In its application to the court, the EFCC highlighted the method used to defraud victims, explaining that investors were instructed to convert their digital assets into the stablecoin USDT. These USDT funds were then deposited into digital wallets controlled by the identified suspects.
The agency further revealed that after investors deposited over $1 billion, the CBEX platform suddenly became inaccessible, preventing any withdrawals and exposing the operation as a scam. While ST Technologies International Limited was found to be registered with the Corporate Affairs Commission (CAC), the EFCC asserted that the company lacked the necessary license from the SEC to operate as an investment platform.