The Economic and Financial Crimes Commission (EFCC) has launched a sweeping investigation into the alleged N1.3 trillion investment fraud involving CryptoBank Exchange (CBEX), a digital trading platform that collapsed on Monday, leaving thousands of Nigerian and foreign investors stranded.
The platform, operated by a group of foreign nationals and their Nigerian collaborators, promised investors a 100 per cent return within 30 days. However, it abruptly restricted withdrawals on April 9, 2025, and later required users to deposit additional funds to access their trapped balances—a move that raised widespread alarm.
EFCC spokesperson Dele Oyewale confirmed on Tuesday that the commission had already begun investigating CBEX before its collapse. He noted that the anti-graft agency is working closely with the International Criminal Police Organisation (INTERPOL) to track down the perpetrators.
“We had our intelligence before the incident and were already working on the case,” Oyewale said. “Now that the scheme has collapsed, efforts are being intensified to apprehend the key players and their collaborators. We are also targeting other fraudulent investment platforms.”
He emphasized the EFCC’s commitment to recovering stolen funds and prosecuting offenders, while also cautioning Nigerians to be wary of Ponzi schemes and unregulated digital trading platforms.
CBEX lured thousands of investors with promises of quick and massive returns through cryptocurrency trading. But by April 9, withdrawals were restricted, and users began receiving messages demanding fresh deposits—$100 for accounts below $1,000, and $200 for larger balances—allegedly for verification purposes.
Many investors, believing it was a temporary glitch, continued signing up. But by Monday, it became clear the platform had collapsed. CBEX had already changed its domain name several times since January 2024, further complicating recovery efforts.
Unconfirmed reports estimate that around $847 million in investor funds may have been lost, potentially more as investigations continue. The collapse sparked protests across Nigeria. In Ibadan, Oyo State, angry investors stormed CBEX’s Oke Ado office, looting furniture and equipment. Security forces, including the Nigeria Police and Operation Amotekun, were deployed to maintain order.
In Abuja, the CBEX office in Jahi was shut down, with security guards turning away visitors. “No staff came to work today,” one guard said. “They were likely told to stay away.”
The fallout has been devastating for many. A woman who lost her $1,000 bridal savings said, “I don’t even know how to tell my fiancé. I feel numb.” Another investor said her brother lost his school fees and is now too ashamed to face their parents.
A businessman who introduced three friends to the platform said, “I feel terrible. I only invested $100 and recovered my money, but they lost about $8,000. I don’t know how to tell them.”
Financial experts have attributed the collapse to unchecked greed and lack of due diligence. Banker and educator Kelechi Godfrey revealed he was approached to promote CBEX. “They said AI was behind the trading,” he recalled. “But when promises of 100 per cent returns appear, that’s a red flag. Many Nigerians ignore the basics of research.”
Investment banker Segun Aremu echoed the sentiment, saying, “People want big returns without big risks. If you’re offered 100 per cent profit in a month, your capital is at extreme risk. Greed is the root of many of these scams.”
The Securities and Exchange Commission (SEC) recently warned Nigerians against patronizing unregistered platforms. Under the newly signed Investment and Securities Act (ISA) 2025, it is now illegal for any entity to operate an online forex or digital asset platform without SEC registration.
SEC Director-General, Dr. Emomotimi Agama, described the new law as a crucial step in protecting investors and modernizing Nigeria’s capital market. The EFCC reaffirmed its commitment to rooting out fraudulent schemes and recovering stolen funds. It previously released a list of 58 companies involved in similar illegal investment activities. Some have already been prosecuted, with five convictions secured, while others are still under investigation.
“We urge Nigerians to verify investment platforms with the SEC and CBN before committing funds,” Oyewale advised. “Victims should come forward—we are working hard to recover what we can.”
