Three promoters of the now-collapsed and fraudulent cryptocurrency investment scheme known as “CBEX” have sought bail from the Federal High Court in Abuja following their detention in connection with an alleged $1 billion scam targeting Nigerian victims.
The legal team for the three suspects, Babatunde Busari and Justice Otorudo, sought bail from Justice Emeka Nwite over the alleged prolonged detention of their clients at the Economic and Financial Crimes Commission (EFCC) facility.
On April 24, 2025, that the court had ordered the arrest and remand of six promoters of “CBEX” following an EFCC ex parte motion.
The six affected suspects are Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim (1st to 6th defendants).
The Commission alleged that the defendants used a company called ST Technologies to promote CBEX, luring Nigerians to invest.
Legal Development
At the previous court session, EFCC counsel Fadila Yusuf informed the court of a motion ex parte relating to investigations into CBEX and the Commission’s intention to prosecute the suspects in accordance with the Administration of Criminal Justice Act.
“An order of this Honourable Court for the issuance of a warrant of arrest for the defendants
“An order of this Honourable Court remanding the defendants in the custody of the Complainant/Applicant pending the conclusion of the investigation into the alleged offences and possible prosecution,” Yusuf said in open court, emphasizing that the case involves foreign collaborators and a scam worth over $1 billion.
The EFCC added that after victims deposited over $1 billion, the CBEX platform became inaccessible, preventing users from withdrawing their investments and revealing the operation to be a scam.
In response, Justice Nwite stated that after reviewing the EFCC’s submissions and court documents, he found merit in the application and consequently granted the motion as prayed.
– What Transpired In Court
At the resumed court session on Wednesday, Babatunde Busari, who stood in for Abiodun, asked the court to grant his client bail on “liberal terms.”
He argued that on April 24, the court issued an arrest warrant in line with the EFCC’s request.
He said that prior to April 24, his client, through his lawyer, informed the EFCC that the applicant would honor the Commission’s investigation.
He stressed that the applicant (Abiodun) has been in EFCC custody, allegedly beyond the period required by law, “with no charge filed against him” yet.
He also asked the court to direct the EFCC to produce his client in court.
Responding to the EFCC’s counter-affidavit against his bail request, the lawyer claimed that the entirety of the Commission’s counter-affidavit had not controverted his assertions.
He urged the court to admit the applicant to bail.
Justice Otorudo, who represented Otorudo and Ehirim, also called for the bail of his clients on liberal terms.
On her part, Yusuf opposed their applications for bail.
“Our submission is that this prayer has been overtaken by events as a charge has already been filed before this honourable court, and we urge you to so hold,” she said.
Yusuf added that all the defendants in this matter are being charged with the offence of $1 billion fraud.
After hearing from the lawyers, the judge fixed June 30 for ruling on the bail applications.
– What You Should Know
Amid the collapse of the CBEX scheme, the EFCC clarified that possessing a Special Control Unit against Money Laundering (SCUML) certificate does not constitute legal clearance to operate in Nigeria.
In a statement released Monday, the EFCC noted that while ST Technologies (not CBEX) is registered with SCUML in accordance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, this does not authorize it to offer investment services.
CBEX, a digital investment platform operated by foreign nationals in collaboration with Nigerian partners, reportedly collapsed on Monday, leaving thousands of investors stranded and unable to access their funds.
The platform, which had promised 100% returns within 30 days through online trading, first restricted withdrawals on April 9, 2025. Many users initially believed the issue was a temporary glitch—until their account balances vanished.
In a bizarre twist, affected users were instructed to deposit additional funds—at least $100—to regain access to their accounts. For users with balances over $1,000, the required deposit was $200.
Shortly before cutting off subscribers, CBEX released a message stating:
“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required. Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews.”
Despite signs of trouble, several new users reportedly joined the platform after the withdrawal restriction, believing it was a temporary technical issue.
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