EFCC Recovers Funds in N1.3tn CBEX Crypto Fraud Case

The Economic and Financial Crimes Commission (EFCC) has made substantial headway in its investigation into the Crypto Bridge Exchange (CBEX) trading platform fraud, which defrauded Nigerians of over N1.3 trillion.

EFCC Chairman Ola Olukoyede, speaking in an interview with TVC on Sunday, confirmed that the agency has recovered a significant portion of the stolen funds from the collapsed digital investment scheme.

He revealed that the EFCC has also arrested multiple suspects linked to the CBEX crypto fraud, marking a key milestone in the ongoing probe. Olukoyede emphasized that the recovered funds, held in cryptocurrency, required complex tracing efforts due to the nature of the digital assets involved.

He explained that converting these cryptocurrency holdings back into cash dollars poses challenges, as it necessitates navigating the same crypto processes used by the fraudsters. The investigation has faced hurdles because the perpetrators utilized non-custodial wallets, which lack Know Your Customer (KYC) requirements and identity verification.

Olukoyede noted that these anonymous wallets allowed the fraudsters to transfer funds to locations like Cambodia in Eastern Europe, complicating efforts to track them.

Despite this, the EFCC has successfully blocked several wallets containing undispersed funds, limiting the criminals’ ability to fully dissipate the stolen money.

The agency continues to pursue additional suspects, with Olukoyede disclosing that some have been declared wanted, though he withheld specifics to avoid disrupting the investigation.

The CBEX platform’s collapse in April triggered massive financial losses, wiping out account balances and sparking outrage among investors across Nigeria.

Users faced repeated withdrawal issues before the platform became inaccessible, amplifying concerns about the security of digital investments. Social media erupted with reactions as affected Nigerians voiced anger, disappointment, and calls for justice following the scam’s exposure.

CBEX has since resumed operations, introducing new withdrawal options in an attempt to rebuild trust among its investor base. However, Olukoyede warned that some perpetrators remain active, continuing to exploit unsuspecting victims despite the EFCC’s efforts.

He urged the public to exercise caution, highlighting the persistent risks posed by crypto fraud and the importance of learning from the CBEX scam.

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