The Economic and Financial Crimes Commission (EFCC) has launched an investigation into the alleged N1.3 trillion fraud involving the now-defunct digital investment platform, CryptoBank Exchange (CBEX). The platform, operated by a group of foreign nationals and Nigerian collaborators, reportedly collapsed on Monday, leaving thousands of investors unable to access their funds.
The EFCC spokesperson, Dele Oyewale, confirmed on Tuesday that the commission is partnering with the International Criminal Police Organisation (INTERPOL) to probe the incident. According to Oyewale, the EFCC had already begun investigating CBEX prior to its collapse, having received intelligence regarding its operations.
“We had our intelligence before the incident. Now that the scheme has crashed, the key players and their local partners will be brought in,” Oyewale said. He reaffirmed the EFCC’s commitment to protecting Nigerians from the dangers of Ponzi schemes, referencing the commission’s earlier advisory listing 58 companies involved in similar fraudulent activities.
He added that efforts are ongoing to arrest both local and international culprits, and that other deceptive platforms are currently under surveillance. “We are on the local collaborators while partnering with INTERPOL to trace the foreign operators,” he stated.
Although the EFCC could not officially confirm the full scale of the financial loss, unverified reports suggest the total funds lost may amount to as much as $847 million (approximately N1.3 trillion). The platform promised a 100% return within 30 days through crypto trading and restricted withdrawals starting April 9, 2025. Users later discovered their account balances wiped out, with the platform demanding further deposits—between $100 to $200—to “verify” account ownership.
CBEX, which changed its domain name multiple times from January 2024 to February 2025, heavily promoted its services via social media and peer referrals, attracting significant investments from unsuspecting Nigerians.
Following the platform’s crash, the Securities and Exchange Commission (SEC) warned the public to avoid unregistered trading services. SEC Director-General, Dr. Emomotimi Agama, emphasized that under the newly signed Investment and Securities Act 2025, any entity operating an online forex or crypto platform without registration is committing an offence. Agama described the legislation as a vital step to regulate digital financial operations and protect investors.
Outrage erupted across the country in the wake of the CBEX collapse. In Ibadan, angry investors stormed the company’s Oke Ado office, looting furniture and equipment. Security operatives from the Nigeria Police Force and the Amotekun Corps were deployed to restore order.
In Abuja, the CBEX office in Jahi was locked, with private security personnel preventing public access. No staff reported for work, reportedly out of fear of being attacked by aggrieved investors.
One victim from Abuja, who lost $10,000, said she was misled by a friend’s earlier profits. Another, who had invested only $100 but referred friends who lost $8,000, expressed guilt and concern. On social media, a user identified as #the_real_aduke revealed she lost her $1,000 bridal savings, while others shared stories of family members losing school fees and savings.
In a post on X, the FCT Minister’s spokesman, Lere Olayinka, called for intensified investigation but criticized victims for what he described as “greed and foolishness.”
The EFCC, in its March advisory, listed several other companies involved in illegal investment schemes, including Wales Kingdom Capital, Bethseida Group, AQM Capital Limited, and Titan Multibusiness Investment Limited. These companies, according to the EFCC, operated without licenses and lured investors with promises of unrealistic profits.
Oyewale urged Nigerians to verify any investment with regulatory bodies such as the Central Bank of Nigeria (CBN) and SEC before committing funds. He assured that efforts are underway to recover funds where possible and encouraged victims to come forward with their complaints.
Experts have blamed the CBEX debacle on unchecked greed and poor financial literacy. Financial educator Kelechi Godfrey highlighted how many Nigerians overlook basic research before investing. “We want to invest N100 and make N200 instantly, and that mindset is dangerous,” he said.
Investment banker Segun Aremu echoed the sentiment, stating that many Nigerians ignore risk assessment in pursuit of high returns. He warned, “The higher the return, the higher the risk. People should never invest funds meant for essentials, like school fees, in risky ventures.”
He added that the absence of financial advisory services and the public’s reluctance to seek guidance continue to fuel these investment disasters.
As the investigation continues, Nigerians are being reminded of the importance of due diligence and responsible investing in the face of economic hardship and widespread online scams.