Good News: EFCC Announces Recovery of Funds From CBEX Fraud, Makes Arrests

• The EFCC has raised hope for Nigerian investors who lost their money in the CBEX crypto investment fraud
• The commission chairman said it has traced the funds to offshore crypto wallets in Europe and Cambodia
• Nigerians have been advised again by the EFCC to remain vigilant, as some fraudsters behind CBEX are still at large and continue to target unsuspecting victims

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends. (edited)

The Economic and Financial Crimes Commission (EFCC) has announced a breakthrough in its investigation into the Crypto Bridge Exchange (CBEX) fraud.

Ola Olukoyede, EFCC Chairman, who disclosed this while speaking on a TVC interview, confirmed the recovery of funds and subsequent arrests linked to the digital investment platform.

EFCC recovers stolen funds

Olukoyede noted that the EFCC had successfully traced and recovered a substantial amount of the stolen funds.

Olukoyede stated:

"Even though the stolen money was in cryptocurrency, we have managed to recover a reasonable amount."

He also said the investigation has been challenging because the fraudsters used “non-custodial wallets,” which means there was no identity attached to the accounts, making it harder to trace the criminals.

He added:

"We have made progress with CBEX, successfully recovering a substantial amount of funds.

"The funds were taken from them via a crypto wallet, making it impossible to retrieve them in dollars without following the same procedure.

"We have made considerable headway and have effected several arrests. We are withholding detailed information to avoid disrupting ongoing operations. Our focus remains on apprehending numerous individuals who are currently wanted."

EFCC asks Nigerians to be vigilant

The EFCC chairman concluded by urging the public to learn from this case and exercise caution when engaging in digital investments, emphasising the importance of due diligence to avoid falling victim to such fraudulent schemes, Newstelegraph reports.

His words:

"We are still investigating numerous wallets, many of which are non-custodial meaning they operate without KYC, making it impossible to trace them to specific individuals.

"From these non-custodial wallets, the funds were transferred to other wallets in Europe, particularly Eastern Europe and Cambodia, before being further dispersed. We have managed to block some of the wallets where the funds had not yet been moved.

"That’s how far we’ve progressed. Unfortunately, I understand that some of the perpetrators are still active, and Nigerians continue to fall victim. It’s important that people learn from this."

CBEX used CAC, EFCC clearances to convince Nigerians

Earlier, Legit.ng reported that Crypto Bridge Exchange (CBEX), a digital investment platform now exposed as a large-scale Ponzi scheme that defrauded over 600,000 Nigerians of an estimated N1.3 trillion.

The platform operated under the legal name ST Technologies International Limited and exploited its formal registration with Nigerian regulatory bodies to gain public trust.

The EFCC and SEC have launched investigations, with efforts underway to revoke the company's registration and apprehend those involved.

Source: Legit.ng