CBEX Crypto Fraud: Three Suspects Seek Bail as $1 Billion Scam Unravels in Nigeria

Three alleged promoters of the collapsed cryptocurrency investment scheme known as CBEX have applied for bail at the Federal High Court in Abuja, following their detention by the Economic and Financial Crimes Commission (EFCC) in connection with a staggering $1 billion scam targeting Nigerian investors.

The suspects — Babatunde Busari, Justice Otorudo, and others — are accused of orchestrating one of Nigeria’s largest crypto-related frauds through a digital investment platform that lured thousands with promises of quick and massive returns.

Legal Battle Over Bail

Representing the accused, legal counsel Babatunde Busari (for Adefowora Abiodun) and Justice Otorudo (for Avwerosuo Otorudo and Chukwuebuka Ehirim) pleaded with Justice Emeka Nwite to grant their clients bail, citing prolonged detention without formal charges.

Busari argued that Abiodun voluntarily cooperated with the EFCC and had been held beyond the constitutionally allowed period without being formally charged.

“The applicant has been in EFCC custody with no charge filed against him yet,” he told the court. “We ask for his release on liberal terms and for the Commission to produce him in court.”

Otorudo echoed the same concerns on behalf of his clients, asking the court to grant bail and dismiss what he described as a “vague opposition” by the prosecution.

EFCC Pushes Back

Opposing the bail applications, EFCC counsel Fadila Yusuf informed the court that a charge has now been officially filed, making the bail request premature.

“This prayer has been overtaken by events,” she said. “A charge has already been filed before this Honourable Court, and we urge you to so hold.”

Yusuf emphasized that the case involves international collaborators, with the total fraud surpassing $1 billion. She warned the court of the gravity of the scam, which saw the sudden disappearance of funds and the collapse of the CBEX platform.

Justice Nwite, after listening to arguments from both sides, adjourned the case to June 30, 2025, for a ruling on the bail requests.

Background of the Scam

CBEX emerged as a digital investment platform promising 100% returns within 30 days through online crypto trading. Promoted in Nigeria by a company called ST Technologies, CBEX attracted thousands of local investors, many of whom emptied their savings into the platform.

However, on April 9, 2025, the platform restricted withdrawals, sparking panic among users. Despite early reassurances, users eventually found themselves locked out completely, with their account balances wiped.

In a final twist, CBEX demanded additional “verification deposits” — $100 for accounts under $1,000 and $200 for those above — as a prerequisite for unlocking funds. Victims were instructed to retain their deposit receipts for future “withdrawal reviews.” For many, this marked the last interaction before the platform shut down entirely.

EFCC’s Crackdown

Following complaints, the EFCC launched a sweeping investigation. On April 24, the Federal High Court granted the EFCC’s request to arrest and remand six promoters of CBEX, including:

• Adefowora Abiodun Olanipekun

• Adefowora Oluwanisola

• Emmanuel Uko

• Seyi Oloyede

• Avwerosuo Otorudo

• Chukwuebuka Ehirim

The Commission revealed that over $1 billion was funneled into CBEX before it vanished. The platform is believed to have been operated by foreign nationals in collaboration with Nigerian partners, and is now at the center of an international criminal investigation.

Regulatory Warning

In a related development, the EFCC clarified that registration with Nigeria’s Special Control Unit against Money Laundering (SCUML) does not grant companies the legal authority to offer investment services.

“ST Technologies is registered with SCUML in compliance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022,” the agency noted. “However, this does not authorize it to solicit public investments.”

The Fallout

Thousands of Nigerians remain stranded, with little hope of recovering their funds. In what has become a cautionary tale about unregulated digital investments, CBEX’s spectacular collapse highlights the urgent need for tighter crypto oversight and stronger investor protections.

As court proceedings continue, the fate of the accused and the broader ramifications for Nigeria’s digital finance space remain to be seen. The upcoming June 30 ruling on bail is expected to mark a key turning point in what may become one of the country’s most high-profile financial crime trials.