A federal high court in Abuja, Nigeria, has approved a request by the Economic and Financial Crimes Commission (EFCC) to arrest six individuals linked to a major cryptocurrency fraud.
The suspects operated a purported investment scam via the Crypto Bridge Exchange (CBEX), gathering more than one billion dollars from investors. Judge Emeka Nwite made the order after the EFCC submitted the ex parte application.
Fadila Yusuf of the EFCC explained that the suspects were on the run and should be arrested to enable thorough investigation and prosecution. The court concurred and held that the arrest and remand were in order.
Victims deposited crypto into CBEX wallets
The suspects are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim. According to the EFCC, they used their company, ST Technologies International Limited, to promote CBEX.
They marketed high investment returns and induced individuals to put their cryptocurrency into CBEX wallets. The suspects offered the victims returns as high as 100 percent, the EFCC explained. The victims exchanged the cryptocurrencies for USDT, a stablecoin, and moved the funds to the suspects’ wallets.
Initially, investors were able to see their balances and observe the platform. Then the site went offline and users could not access the funds anymore. Following numerous complaints, the EFCC instituted a formal investigation.
EFCC pursues legal action and recovery
It discovered that while ST Technologies was registered with the Corporate Affairs Commission, it wasn’t authorized by the Securities and Exchange Commission to conduct investment business. The suspects left behind the last known points in Lagos and Ogun states.
The EFCC further stressed the significance of the court’s approval. With the issuance of the arrest warrant, law enforcers could place the suspects on the watchlist and trace them.
This move could restore the stolen funds and bring the perpetrators to justice. This month, investors who were victims of the scam raided the office of a CBEX partner, the ST Team in Ibadan, in Oyo State. The outburst of anger over the scam will not let up.
The EFCC has also confirmed that it is in the process of recovering the stolen funds. The commission is currently working on tracing the suspects and pursuing legal action.
