The Economic and Financial Crimes Commission (EFCC) has launched a comprehensive investigation into an alleged N1.3 trillion cryptocurrency fraud connected to the now-defunct digital investment platform, CryptoBank Exchange (CBEX).
According to the EFCC, the commission is collaborating with the International Criminal Police Organisation (INTERPOL) to trace local and international suspects involved in the massive scam.
CBEX, said to have been run by a group of foreign nationals in collaboration with Nigerian partners, abruptly shut down operations on Monday.
The sudden collapse left thousands of investors locked out of their accounts. Many reported waking up to find their account balances wiped, with the platform demanding further deposits before access could be regained.
EFCC spokesperson, Dele Oyewale, revealed that the commission had already begun investigating the platform prior to its collapse, based on credible intelligence reports.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” he said on Tuesday.
He assured Nigerians that the EFCC is committed to exposing and dismantling Ponzi schemes like CBEX, highlighting that several similar operations are also under active investigation. “Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on the local collaborators while we are partnering INTERPOL to trace the foreign operators,” Oyewale added.
Although the exact scale of losses is yet to be officially verified, unconfirmed reports estimate the stolen funds at over $847 million (about N1.3 trillion), with both Nigerian and foreign investors affected. CBEX, which promised 100% returns within 30 days through online trading, began restricting withdrawals on April 9, 2025.
In a move widely seen as a red flag, the platform began demanding deposits of $100 to $200 from users to “verify” accounts before allowing withdrawals — a tactic that lured even more unsuspecting victims before the final crash.
The Securities and Exchange Commission (SEC) recently warned against unregistered trading platforms, emphasizing that the new Investment and Securities Act, 2025 makes it illegal to operate such platforms without proper licensing. SEC Director-General Dr. Emomotimi Agama urged prospective operators to seek registration to avoid sanctions.
The collapse of CBEX has triggered widespread public outrage. In Ibadan, Oyo State, furious investors stormed the company’s office in the Oke Ado area, vandalising the premises and making away with furniture in protest.
Security personnel, including operatives from the Nigeria Police and Operation Amotekun, were swiftly deployed to bring the situation under control.
CBEX heavily marketed itself through social media and peer-to-peer networks, attracting thousands of investors with promises of exceptionally high returns.
Investigations have revealed that the platform changed its domain name multiple times between January 2024 and February 2025 — a move now believed to have been a calculated strategy to evade regulatory oversight.
