Eric Patrick
A federal high court sitting in Abuja has granted permission to the Economic and Financial Crimes Commission (EFCC) to arrest and detain six Crypto Bridge Exchange (CBEX) promoters in connection with allegations of investment fraud amounting to over one billion dollars.
The presiding judge, Emeka Nwite, gave the order following an ex parte application moved by Fadila Yusuf, counsel to the EFCC.
The EFCC’s application identifies the six suspects as Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
The commission sought an order of the court for a warrant of arrest of the defendants.
They also prayed the court for “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution”.
Yusuf stated that the defendants are currently at large, and a warrant of arrest is required to apprehend them for a thorough investigation and prosecution of the case.
In the affidavit the EFCC revealed that preliminary investigations indicated the defendants, through their company ST Technologies International Limited, promoted another company, Crypto Bridge Exchange (CBEX).
They allegedly ran advertisements to deceive unsuspecting members of the public into investing cryptocurrencies on the CBEX platform.
The EFCC said the defendants promised an unrealistic return on investment of up to 100 percent.
According to the Commission, the defendants made unrealistic promises of returns on investment of up to 100 percent.
“The victims were made to convert their digital assets into a stablecoin of USDT for onward deposit into the suspects’ crypto wallet,” Yusuf said.
“The victims were initially given full access to the platform to monitor their investment.
“Following the deposits valued at over $1 billion by the victims, the CBEX investment platform became inaccessible to them, and they could no longer withdraw from the investment made.
“The victims later discovered that the said scheme is a scam.
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“During the course of investigation, it was discovered that the said ST Technologies International Limited, though registered with the Corporate Affairs Commission (CAC), it was not registered with the Securities and Exchange Commission (SEC) for investment purposes.
“It was also discovered during the investigation that the defendants had moved out of their last known address in Lagos and Ogun states.”
The EFCC explained that securing an arrest warrant was crucial to placing the defendants on a watch list, allowing authorities to track and capture the suspects so they can face the charges against them.
Nwite approved the request for an arrest warrant and remand, stating that the order was essential for the commission to apprehend the defendants and complete its investigation.
He said, “I have listened to the submission of the learned counsel for the applicant,” Nwite said.
“I have also gone through the affidavit evidence with exhibits thereto, along with the written address.
“I am of the view and I so hold that the application is meritorious.
“Consequently, the application is granted as prayed.”
Recall in April, reports surfaced indicating that CBEX users were unable to withdraw their funds.
On Monday, videos began circulating on social media, showing enraged investors storming and looting the office of Smart Treasure (ST Team), an affiliate of CBEX, in Ibadan, Oyo State.
The EFCC recently confirmed receiving multiple complaints about the platform.
The commission spokesperson, Dele Oyewale has assured affected investors that efforts were underway to recover their funds.