Nigerian authorities have continued to raise the red flag on digital fraud through Ponzi-style schemes, even as they track down, arrest and recover funds from the digital investment platform Crypto Bridge Exchange (CBEX), which collapsed in April after carting away more than $980 million from local investors.

 

The anti-graft agency, Economic and Financial Crimes Commission (EFCC), confirmed that it had arrested some persons connected to the massive fraud and recovered some of the money.

Ola Olukoyede, EFCC chairman, said the commission had made “significant progress” in its investigation into the Ponzi scheme, which scammed thousands of Nigerians.“We have gone far with CBEX. We have been able to recover a reasonable amount of money,” Mr Olukoyede said.

The stolen funds are in cryptocurrency.

In the meantime, the Securities and Exchange Commission has issued a warning about unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Ltd.“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Ltd is not registered to operate in any capacity in the Nigerian Capital Market,” it said in a circular issued on May 28, 2025.“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s dedicated portal www.sec.gov.ng/cmos, before transacting with them.”On the CBEX case, authorities admit the investigation has been challenging due to the use of non-custodial wallets by the fraudsters -- crypto wallets not tied to any verifiable identity.“So, from the noncustodial wallet, they moved it to some wallets in Europe, eastern Europe, Cambodia…and from there, they disbursed the money. We have been able to block some of these wallets where money has not been disbursed,” Mr Olukoyede said.

Two suspects have been arrested, while others, including four Kenyans, remain at large.“We are after quite a number of people declared wanted,” he said.

Foreign collaboratorsMeanwhile, last week the Federal High Court in Abuja ordered the arrest and remand of six CBEX promoters over the scam.

Justice Emeka Nwite, granted the EFCC’s ex-parte motion seeking warrants for the suspects’ arrest and detention. The suspects are Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others who have not been named.

According to the complaint by EFCC, the suspects used a front company, ST Technologies International Ltd, to lure Nigerians into investing in CBEX with promises of 100 percent returns in 30 days.

The court heard that the scheme had foreign collaborators and required urgent action to prevent suspects from fleeing.

The judge ordered that the accused be held in EFCC custody pending further investigation and potential prosecution.

According to the EFCC, ST Technologies was registered with the Corporate Affairs Commission but lacked a licence from the Securities and Exchange Commission (SEC).

The commission clarified that ST’s SCUML certificate does not permit it to operate as an investment firm.

CBEX collapseCBEX collapsed in April, leaving investors unable to access their funds after the platform began restricting withdrawals.

Users were asked to pay additional verification fees—$100 or $200 depending on account size—just before the platform shut down.

Despite its collapse, the platform reportedly resumed limited operations, allowing new registrations and withdrawals in what experts described as a tactic to restore investor confidence and continue the fraud.

The SEC had warned Nigerians against investing in unregistered platforms. SEC director-general Emomotimi Agama said the commission was unaware of CBEX’s operations prior to its collapse.“It is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services,” the agency said.

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