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In a dramatic turn of events that has gripped Nigeria’s financial and legal landscapes, three detained promoters of the now-infamous Crypto Bridge Exchange (CBEX) have turned to the courts, seeking bail from the custody of the Economic and Financial Crimes Commission (EFCC). The case, centered around an alleged $1 billion scam that left thousands of investors reeling, has unfolded like a high-stakes thriller, with the latest chapter set to reach a climax on June 30, 2025. As the nation watches, the courtroom battle sheds light on the complexities of cryptocurrency fraud, the resilience of the accused, and the relentless pursuit of justice by authorities. This is the story of a scandal that has shaken trust in digital investments and sparked a legal saga that’s far from over.
The Rise and Fall of CBEX
The tale begins with CBEX, a cryptocurrency trading platform that promised investors the moon—literally, with returns of up to 100% within 30 days through what was marketed as cutting-edge AI trading. Launched with a polished digital facade and aggressive online marketing, the platform lured hundreds of thousands of Nigerians, many of whom poured their life savings into the scheme. Operated by a shadowy network involving foreign nationals and Nigerian promoters, CBEX operated under the guise of legitimacy, leveraging a registered company, ST Technologies International Limited, to build credibility. But the dream quickly turned into a nightmare when, in April 2025, the platform abruptly shut down, locking investors out of their accounts and vanishing with an estimated $1 billion in digital assets.
The collapse triggered widespread outrage. Angry investors stormed and looted the offices of Smart Treasure, a CBEX affiliate in Ibadan, while the EFCC stepped in to investigate. The anti-graft agency’s probe revealed a sophisticated Ponzi scheme, where early investors were paid with funds from new entrants, a classic tactic to sustain the illusion of profitability. The Securities and Exchange Commission (SEC) later confirmed that CBEX was never registered or licensed to operate as an investment platform, exposing the flimsy foundation on which the empire was built.
The EFCC Moves In
The EFCC wasted no time. In late April 2025, the agency approached the Federal High Court in Abuja with an ex-parte motion, requesting arrest warrants for six key promoters: Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. Justice Emeka Nwite granted the request, authorizing the EFCC to detain the suspects pending a full investigation. The court’s decision was based on evidence that the promoters had used ST Technologies to advertise unrealistic returns, luring unsuspecting victims to convert their digital assets into the stablecoin USDT and deposit them into controlled wallets. After amassing over $1 billion, the platform became inaccessible, exposing the scam.
Of the six named suspects, three—Olanipekun, Otorudo, and Ehirim—voluntarily surrendered to the EFCC following the court order. Their detention marked the beginning of a tense standoff, as the agency worked to unravel the international web of the fraud, tracing funds to four countries and collaborating with Interpol and the FBI. Yet, as the investigation deepened, the detained promoters found themselves at a crossroads, facing the prospect of prolonged custody without trial.
The Bail Plea: A Fight for Freedom
Fast forward to June 11, 2025, and the narrative takes a new turn. The three detained CBEX promoters, represented by their legal teams, filed bail applications, arguing that their continued detention violated their rights. In a courtroom packed with anticipation, lawyers Babatunde Busari (for Olanipekun) and Justice Otorudo (for Otorudo and Ehirim) presented their cases before Justice Nwite. Busari highlighted that Olanipekun had surrendered voluntarily on April 28, 2025, and had been held for over 14 days—beyond the statutory limit—despite suffering from a severe ailment. He urged the court to compel the EFCC to produce his client for a bail hearing, citing breaches of legal protections.
The defense teams argued that the lack of a specified detention period in the initial court order allowed the EFCC to hold the suspects indefinitely, a move they deemed unjust. They submitted counter-affidavits to challenge the EFCC’s stance, setting the stage for a legal showdown. EFCC counsel Fadila Yusuf, however, countered that the investigation was ongoing, with international dimensions that required time to resolve. The agency maintained that the suspects’ release could jeopardize the case, given the complexity of tracking the dispersed funds.
After hearing both sides, Justice Nwite adjourned the ruling to June 30, 2025, leaving the promoters’ fate hanging in the balance. The decision will not only determine their immediate future but also signal the court’s stance on balancing investigative needs with individual rights in high-profile fraud cases.
The Human Cost and Public Outcry
Behind the legal jargon and courtroom drama lies a human tragedy. Over 600,000 investors, many of whom liquidated assets or took loans to join CBEX, are now grappling with losses estimated at N1.3 trillion. Stories of despair have flooded social media, with some investors, like Fuji singer Taye Currency, publicly lamenting losses of millions of naira. The public outcry has been fierce, with many questioning how such a scheme operated unchecked and why regulatory bodies failed to act sooner. Critics have pointed fingers at the EFCC and SEC, accusing them of reactive rather than preventive measures, while others demand swift justice for the victims.
The EFCC, for its part, has vowed to recover the lost funds, though Chairman Ola Olukoyede admitted that full restitution may be “practically impossible” due to the dissipation of assets across global crypto wallets. The agency’s collaboration with international partners offers a glimmer of hope, but the process is slow, and trust in the financial system remains shattered.
A Test for Nigeria’s Justice System
This case is more than just a financial scandal—it’s a litmus test for Nigeria’s justice system. The bail hearing pits the rights of the accused against the state’s duty to protect the public, raising questions about due process in the face of alleged economic sabotage. If granted bail, the promoters could walk free pending trial, potentially fueling public anger. If denied, it could set a precedent for extended detentions in complex fraud cases, sparking debates about civil liberties.
The involvement of foreign collaborators and the use of unregulated crypto platforms add layers of difficulty, testing the EFCC’s capacity to navigate global financial networks. Meanwhile, the SEC’s recent empowerment under the Investment and Securities Act (ISA) 2025, which imposes severe penalties for fraudulent schemes, signals a tougher stance on future offenders. Yet, the CBEX saga underscores the need for proactive oversight to prevent such crises.
What Lies Ahead?
As June 30 approaches, all eyes are on the Federal High Court. The ruling will be a pivotal moment, not just for Olanipekun, Otorudo, and Ehirim, but for the thousands of victims awaiting justice. Will the court prioritize the investigation’s needs or the suspects’ rights? The answer could reshape how Nigeria handles similar cases in an era where cryptocurrency scams are on the rise.
For now, the story of CBEX remains unfinished. It’s a cautionary tale of greed, deception, and the fragility of trust in the digital age. As the legal battle unfolds, one thing is clear: the scars of this alleged $1 billion scam will linger, challenging Nigeria to strengthen its defenses against financial fraud and restore faith in its institutions.
What are your thoughts on this case? Should the CBEX promoters be granted bail, or does the scale of the alleged fraud justify their continued detention? Share your views in the comments below!
