CBEX Crypto Collapse: EFCC Tracks Down CBEX Crypto Fraudsters, Recovers Billions Amid Trillion-Naira Scam

 

The Economic and Financial Crimes Commission (EFCC) has made critical strides in unravelling the intricate layers of fraud tied to the now-defunct Crypto Bridge Exchange (CBEX), a platform that lured thousands of Nigerians into a digital investment trap that ultimately crashed—leaving behind a financial catastrophe amounting to a staggering N1.3 trillion.

During a recent interview with TVC, EFCC Chairman Mr. Ola Olukoyede shed light on the progress made so far in the high-profile investigation. He disclosed that the agency had successfully recovered a portion of the stolen funds, despite the considerable complexity involved in tracing assets that were siphoned off through blockchain-based transactions.

CBEX, which once promoted itself as a cutting-edge digital finance platform, abruptly shut down in April. For weeks prior, users reported issues with accessing their accounts and withdrawing funds. The situation escalated rapidly, culminating in the total loss of access to user wallets and triggering nationwide outrage.

EFCC operatives, leveraging both traditional financial tracking tools and advanced cyber-forensic methods, have identified several wallets involved in the scam. Olukoyede explained that though the stolen funds were held in cryptocurrency, the commission had managed to intercept some of the digital assets before they were fully laundered across international crypto networks.

“Even though it’s in the crypto wallet, the same way the money was taken from them, there is no way you will get it in dollars in cash without necessarily going through the same process,” he explained, pointing to the intricate nature of digital finance and the hurdles it presents in recovering lost assets.

Olukoyede further revealed that the EFCC had made "reasonable arrests" of suspects directly linked to the scam, though investigations are far from over. With several culprits still at large, the commission has opted not to reveal too many operational details, fearing that it could compromise ongoing efforts.

One of the major stumbling blocks in the probe is the use of non-custodial wallets by the fraudsters. Unlike custodial wallets maintained by regulated exchanges, non-custodial wallets don't require Know Your Customer (KYC) verification, allowing bad actors to mask their identities completely.

These anonymous wallets were reportedly used to funnel stolen funds across borders, complicating law enforcement efforts. From Nigeria, the crypto assets were moved to wallets in Europe, Eastern Europe, and notably Cambodia, where parts of the money were either dispersed or converted into other forms of currency and assets.

EFCC teams have managed to block some of the wallets before the funds were fully dispersed. Investigators are currently tracing the movement of funds across various blockchain ledgers in hopes of identifying the final beneficiaries.

Ominously, Olukoyede added that even as the crackdown continues, some perpetrators remain active, and unsuspecting Nigerians are still being lured into similar schemes. “I even learnt that there are still some of these perpetrators, and Nigerians are still falling victim. I believe people should learn from this,” he warned.

The collapse of CBEX represents one of Nigeria’s largest crypto-related financial frauds in recent history. While the digital finance space continues to grow, the incident serves as a stark reminder of the dangers posed by unregulated platforms and the urgent need for investor vigilance.

Authorities are urging the public to avoid crypto schemes that promise unusually high returns without transparent investment models or verifiable regulatory standing. With the EFCC determined to bring every perpetrator to justice, the saga of CBEX may just be the beginning of a broader crackdown on crypto-related fraud in Nigeria.