The Economic and Financial Crimes Commission (EFCC) on Monday arraigned two operators of Crypto Bridge Exchange (CBEX) before the Federal High Court in Abuja on charges bordering on illegal financial operations, unlicensed investment schemes, and crypto-related fraud. Eyes Of Lagos reports,

The accused, Avwerosuo Otorudo and Chukwuebuka Ehirim, were brought before Justice Mohammed Umar and pleaded not guilty to an amended three-count charge marked FHC/ABJ/CR/216/2025.

Fraud Allegations: Up To 88% ROI Promised Without SEC Approval

According to EFCC counsel Fadila Yusuf, the duo allegedly solicited public funds through the CBEX investment platform, promising returns as high as 88%, all without regulatory approval from the Securities and Exchange Commission (SEC).

The charges accuse the defendants of operating an unregistered financial scheme, promoting unauthorized investments, and acting as investment managers without a valid license, in violation of multiple sections of the Investment and Securities Act and the Banks and Other Financial Institutions Act (BOFIA).

Courtroom Proceedings: EFCC Requests Remand, Defence Opposes

During Monday’s session, the EFCC sought a remand order for the accused at Kuje Correctional Centre, pending trial. While the defendants’ lawyer, Justice Otorudo, pleaded for bail, citing their cooperation with investigators and lack of criminal history, the prosecution objected.

EFCC argued the charges were serious economic crimes, warning that the defendants, if granted bail, might abscond, as other suspects in the case were still at large.

Justice Umar ordered that the two be remanded in Kuje prison and adjourned the matter to July 18, 2025, for a ruling on their bail application.

Over $1 Billion Allegedly Lost by Investors

Court documents and EFCC filings reveal that CBEX lured investors by promoting crypto deposits—particularly USDT (Tether)—offering extremely high returns. However, the platform allegedly became inaccessible after collecting over $1 billion worth of crypto assets, leaving investors unable to withdraw funds.

Investigators discovered that:

• Victims were encouraged to deposit crypto assets into wallets controlled by CBEX.

• The platform initially allowed tracking of investments to build trust.

• Upon receiving large volumes of crypto, the platform shut down access, triggering widespread panic.

• CBEX’s parent firm, ST Technologies International Ltd, is not registered with SEC as an investment company.

EFCC’s Crackdown and Previous Court Order

The arraignment follows an earlier court order by Justice Emeka Nwite, who had in April 2025, authorized the detention of six CBEX operators, including:

• Adefowora Abiodun

• Adefowora Oluwanisola

• Emmanuel Uko

• Seyi Oloyede

• Avwerosuo Otorudo

• Chukwuebuka Ehirim

The court granted the EFCC leave to detain them for investigation after it was confirmed they moved from their last known addresses in Lagos and Ogun States, making arrests difficult.

EFCC sources also clarified that despite online claims of a “$1 billion scam,” the official charge sheet currently does not list that amount—though investigations are ongoing.

Legal Implications and Next Steps

If convicted, the defendants face up to five years in prison or fines, depending on how the court interprets violations under BOFIA and ISA. Legal analysts suggest the severity of the alleged scam could influence the court’s stance on bail and sentencing.

The EFCC has vowed to pursue all suspects and recover stolen funds, warning Nigerians to be wary of unregulated crypto schemes promising extraordinary profits.