Korede Abdullah in Lagos
The Federal High Court in Abuja has ordered the arrest and remand of six promoters linked to the fraudulent cryptocurrency investment scheme known as “CBEX,” which allegedly scammed Nigerian investors out of approximately $1 billion.
Justice Emeka Nwite issued this directive on Thursday, following an ex-parte motion presented by the Economic and Financial Crimes Commission (EFCC) lawyer, Fadila Yusuf, who emphasized the urgency of the matter due to the involvement of foreign collaborators and the extensive nature of the alleged fraud.
“An order of this Honourable Court for the issuance of a warrant of arrest for the defendants,” Yusuf stated, underscoring the need for their detention pending further investigation and prosecution.
The EFCC’s investigation revealed that the defendants utilized a company named ST Technologies to promote CBEX, enticing Nigerians with promises of unrealistic returns on their investments.
Victims were reportedly instructed to convert their digital assets into the stablecoin USDT, which was then deposited into wallets controlled by the suspects.
However, after accumulating over $1 billion from unsuspecting investors, the CBEX platform became inaccessible, preventing withdrawals and exposing the operation as a scam.
Yusuf noted that while ST Technologies was registered with the Corporate Affairs Commission (CAC), it lacked the necessary licensing from the Securities and Exchange Commission (SEC) to operate as an investment platform.
