In response to the massive fallout from the collapse of CryptoBank Exchange (CBEX), the Economic and Financial Crimes Commission (EFCC) has initiated a comprehensive investigation into a suspected fraud scheme that could involve losses up to N1.3 trillion.
This digital investment platform has left numerous investors locked out of their accounts, prompting the EFCC to collaborate with the International Criminal Police Organisation (INTERPOL) to identify both local and international perpetrators involved in this alleged scam.
The EFCC’s spokesperson, Dele Oyewale, revealed that the commission had already been gathering intelligence prior to CBEX’s abrupt downfall on Monday. “We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” he stated on Tuesday.
The commission is determined to expose and dismantle Ponzi schemes like CBEX, emphasizing that several similar fraudulent operations are currently under investigation. “Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on the local collaborators while we are partnering INTERPOL to trace the foreign operators,” Oyewale added.
While official confirmation of the exact losses remains pending, estimates suggest that over $847 million (approximately N1.3 trillion) has been swindled from both Nigerian and foreign investors. CBEX, which lured users with promises of 100% returns within a month through online trading, began restricting withdrawals on April 9, 2025.
In a concerning turn of events, the platform started requesting additional deposits ranging from $100 to $200 for account verification before allowing any withdrawals. This tactic effectively ensnared more unsuspecting victims before the scheme ultimately collapsed.
The Securities and Exchange Commission (SEC) has recently issued warnings against unregistered trading platforms, highlighting that the new Investment and Securities Act of 2025 makes it illegal to operate such platforms without proper licensing. SEC Director-General Dr. Emomotimi Agama called on potential operators to seek registration to avoid legal repercussions.
The collapse of CBEX has ignited public outrage, with reports of angry investors vandalizing the platform’s office in Oke Ado, Ibadan, in protest. Security forces, including the Nigeria Police and Operation Amotekun, were deployed to restore order amidst the chaos.
CBEX had aggressively marketed itself on social media and through peer networks, attracting thousands of investors with its enticing promises of high returns. Investigators have noted that the platform changed its domain multiple times between January 2024 and February 2025, a strategy now seen as an attempt to evade regulatory oversight.