Global Crypto Fraud: EFCC Traces Stolen Crypto Funds from CBEX Scam Across Four Countries

 

The Economic and Financial Crimes Commission (EFCC) is deep into an international investigation following the collapse of the CBEX cryptocurrency exchange, which is now confirmed to have defrauded investors and funneled proceeds across multiple countries.

Chairman of the EFCC, Ola Olukoyede, during a live interview on Channels Television’s flagship program Politics Today, revealed that the probe into CBEX has uncovered links to at least four foreign nations. According to him, although some progress has been made in freezing assets and blocking suspicious accounts, the chances of full restitution to affected victims are slim.

Efforts to recover the scammed funds have been met with substantial challenges, largely due to the cross-border nature of the transactions. The scheme, executed primarily through cryptocurrency platforms, relied on digital wallets that are well outside Nigeria's legal and regulatory reach. These technological and jurisdictional complexities have significantly hampered recovery efforts.

Despite the grim outlook for full reimbursement, the anti-graft agency has made notable headway. Several accounts believed to be connected to the fraudulent operations have been blocked, and assets running into undisclosed figures have been frozen. While Olukoyede refrained from sharing specific numbers, he indicated that the amount seized so far is “reasonable,” though far from what is needed to compensate all victims.

Digital currencies, while offering anonymity and ease of global transfers, also provide fertile ground for fraudsters. CBEX, now exposed as a fraudulent crypto bridge platform, lured unsuspecting investors with promises of quick returns and secure exchanges, only to vanish with millions in digital assets. The EFCC's ongoing investigation is not only focused on tracking the stolen funds but also on identifying the individuals behind the elaborate con.

Among the troubling revelations is the fact that the majority of key suspects in the operation are foreigners. Their non-Nigerian nationality has posed significant jurisdictional hurdles, making arrests and prosecution considerably more difficult. The EFCC chairman underscored the agency’s limitations in such matters, pointing out that many of the funds were swiftly moved out of Nigerian control shortly after the scam became public.

Three individuals connected to the scam are currently in EFCC custody. Olukoyede disclosed that these suspects have provided investigators with what he termed “very useful statements.” The content of these statements remains confidential as the agency continues to build a case that may involve international collaboration with law enforcement agencies in other countries.

The CBEX scandal has added to growing concerns over the regulation of cryptocurrencies in Nigeria and the risks they pose when left unchecked. The decentralized nature of blockchain technology, while hailed for transparency, has ironically become a shield for bad actors. Fraudulent exchanges and Ponzi-like platforms have repeatedly taken advantage of unsuspecting citizens, many of whom are drawn by the promise of wealth in digital goldmines.

Olukoyede admitted that the EFCC might never be able to guarantee full reimbursement for victims, stressing that much of the money had already been “dissipated” beyond recovery. The agency is now shifting its focus towards deterrence, public awareness, and tighter controls, while still aggressively pursuing the stolen funds and their custodians.

This case is only the latest in a series of cryptocurrency-related frauds that have surfaced in the country over the past few years. As crypto adoption grows, so too does the scale and complexity of financial crimes associated with it. The EFCC has, on multiple occasions, warned the public to exercise caution and avoid platforms that operate without regulatory oversight or physical presence in Nigeria.

CBEX’s collapse has affected a wide spectrum of investors, many of whom committed life savings into what they believed was a legitimate bridge exchange. The psychological and financial impact is far-reaching, with victims spanning various states and even extending into the diaspora.

Olukoyede’s comments signal a stern warning about the limitations of post-fraud intervention in a globalized, digital financial system. He emphasized that once crypto assets are moved outside the country's system, recovery becomes a near-impossible feat without cooperation from international partners.

While the investigation continues, the EFCC is urging Nigerians to remain vigilant and seek only verified platforms for digital financial transactions. At the same time, the agency is working with partners abroad to trace and possibly retrieve the assets that vanished through CBEX’s channels.

As public demand for accountability and justice intensifies, the CBEX saga could become a pivotal moment in Nigeria’s regulatory approach to cryptocurrency, possibly prompting new laws or amendments to better guard against such large-scale digital fraud.