The Economic and Financial Crimes Commission has begun an in-depth investigation into a suspected cryptocurrency fraud involving over N1.3 trillion, linked to the now-defunct digital investment platform, CryptoBank Exchange.
The commission confirmed it is working alongside the International Criminal Police Organisation to trace both domestic and international culprits implicated in the massive scam.
CBEX, reportedly managed by a syndicate of foreign nationals and Nigerian collaborators, collapsed abruptly on Monday.
The sudden crash left thousands of investors stranded, unable to access their funds. In a last-ditch move before going offline, the platform demanded additional deposits from users to “verify” their accounts — a suspicious tactic that duped even more victims.
EFCC spokesperson Dele Oyewale revealed that the agency had already initiated a probe before CBEX’s downfall, following 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,” Oyewale stated on Tuesday.
He reassured Nigerians of the EFCC’s commitment to dismantling fraudulent operations like CBEX.
“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,” he added.
While official figures are yet to be released, unconfirmed estimates place the losses at over $847 million (approximately N1.3 trillion), affecting both local and international investors. The platform had lured users with promises of 100% returns in just 30 days through online trading. Trouble started when withdrawals were restricted on April 9, 2025.
CBEX’s collapse has since sparked outrage across Nigeria. In Ibadan, Oyo State, furious investors stormed the company’s office in Oke Ado, vandalized property, and looted furniture in protest.
Law enforcement, including the Nigeria Police and members of Operation Amotekun, were quickly deployed to restore calm.
In light of the incident, the Securities and Exchange Commission reiterated its warning against using unregistered investment platforms.
Under the newly enacted Investment and Securities Act, 2025, such operations are considered illegal without proper registration.
SEC Director-General, Dr. Emomotimi Agama, advised prospective platform operators to undergo due registration to avoid sanctions.
Investigators believe CBEX deliberately attempted to evade regulation by frequently changing its domain name — reportedly multiple times between January 2024 and February 2025. The platform had also relied heavily on social media and peer-to-peer referrals to draw in thousands of unsuspecting investors.
The EFCC has vowed to pursue justice and ensure that those behind the CBEX debacle — both within and outside Nigeria — are held accountable.
