A Federal High Court in Abuja has approved the arrest and detention of six promoters of the Crypto Bridge Exchange (CBEX) over a suspected $1 billion investment fraud.
Justice Emeka Nwite gave the order on Thursday after hearing from the Economic and Financial Crimes Commission (EFCC)’s lawyer, Fadila Yusuf.
The six suspects are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
Yusuf told the court, “The defendants are at large, and a warrant of arrest is required to bring them in for proper investigation and prosecution.”
According to the EFCC, the suspects ran a fake investment scheme through a company called ST Technologies International Limited, working with CBEX. They allegedly lured thousands of Nigerians to invest in cryptocurrency with promises of returns as high as 100%.
“The victims were required to convert their digital assets into USDT, a stablecoin, and deposit them into the suspects’ cryptocurrency wallets,” the EFCC stated in an affidavit.
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At first, investors could monitor their funds through the CBEX platform. But after over $1 billion was deposited, the platform was suddenly shut down and investors lost access to their money.
The EFCC said ST Technologies was registered with the Corporate Affairs Commission but was never licensed by the Securities and Exchange Commission to operate as an investment firm.
The suspects have allegedly disappeared from their known addresses in Lagos and Ogun states, prompting the EFCC to seek a warrant to place them on a red watch list.
“The commission has established a clear case of fraud and must act to protect the victims and uphold justice,” Yusuf said.
Justice Nwite agreed with the EFCC’s request and granted the application. “I am of the view, and I so hold, that the application is meritorious. Consequently, the application is granted as prayed,” he ruled.
The suspects are now wanted and will be detained by the EFCC once they are arrested.