EFCC Chairman Reveals Dim Prospects for Full Recovery of CBEX Fraud Funds, 'Practically Impossible'

 

The Economic and Financial Crimes Commission (EFCC) has sounded a sobering note regarding the chances of fully recovering funds siphoned through the now-defunct Crypto Bridge Exchange (CBEX) platform. According to EFCC Chairman Ola Olukoyede, the possibility of total restitution to victims of the crypto scam is highly unlikely, citing jurisdictional limitations and the international nature of the crime.

Appearing on Channels Television Wednesday evening, Olukoyede opened up on the painstaking investigations his agency has been undertaking in the wake of the CBEX collapse. He disclosed that despite notable progress in tracing some of the stolen assets, the chances of retrieving all the diverted funds remain slim due to the complexity of the fraud and its cross-border footprint.

Funds traced to multiple countries, encrypted transactions conducted through decentralized blockchain wallets, and the involvement of foreign nationals have severely complicated the recovery efforts, he explained. "We have traced transactions to three, four countries now. The principal actors behind the entire scheme — most of them are foreigners — are not within our jurisdiction," Olukoyede stated.

Several bank accounts linked to the fraud have already been blocked and some financial assets frozen, though the EFCC chief declined to provide specific figures at this stage. “I will not be able to give you a figure,” he said, “but we have been able to freeze some reasonable amount of funds.” The move, he emphasized, reflects the technical competence and diligence of the commission’s cyber-investigations team.

According to Olukoyede, one of the greatest obstacles facing the EFCC is the inherently elusive nature of cryptocurrency transactions. With the bulk of the funds having moved through blockchain wallets that are hosted outside Nigeria’s legal reach, recovering them becomes not only technically demanding but also legally challenging.

Law enforcement authorities around the world continue to grapple with the decentralized structure of cryptocurrencies, which allows for near-anonymous transfers and renders jurisdictional enforcement slow, if not impossible. For a country like Nigeria, where financial regulations are still evolving in response to the rise of crypto assets, Olukoyede’s statement is a stark reminder of the institutional limitations facing anti-corruption agencies.

The chairman acknowledged that despite arrests and interrogations, the stolen funds have largely been dissipated — used, laundered, or transferred beyond the reach of conventional banking systems. “Quite a certain number of money has been dissipated and not within our system,” he said bluntly. “We will not be able to confirm that we will restitute every victim.”

Currently, three suspects are in EFCC custody, and they are said to have made “very useful statements” that have advanced the investigation. Olukoyede did not disclose their identities or the specifics of their confessions but described them as critical to unearthing the broader criminal network behind CBEX.

CBEX, which once marketed itself as a revolutionary blockchain platform enabling seamless crypto trades and investment returns, has turned out to be one of the most damaging crypto-related frauds in Nigeria in recent years. Thousands of investors were lured in by promises of high-yield returns, only to be left stranded when the platform collapsed and its operators vanished.

The EFCC has been under increasing pressure from the public and civil society groups to not only bring the perpetrators to justice but also ensure that victims are compensated. However, Wednesday’s disclosure by Olukoyede indicates that the road to justice may be longer and far more uncertain than many had hoped.

Although the commission is continuing its efforts in collaboration with foreign law enforcement agencies and financial intelligence units, the chairman reiterated that recovery will be partial at best. “Whatever we can get back, we will get it back and let Nigerians know,” he affirmed, emphasizing transparency and commitment to pursuing every available lead.

His remarks serve as a cautionary tale in an era where digital assets remain largely unregulated and where criminal actors are quick to exploit gaps in oversight. Olukoyede also indirectly highlighted the urgent need for international cooperation in tackling crypto crimes, which no single country can effectively address in isolation.

Amid the grim reality, the EFCC has committed to keeping the public informed as developments unfold. While victims of the CBEX scheme may take little solace from the chairman’s words, the message from the anti-graft agency is clear: the pursuit of justice continues, but with guarded expectations.