Latest news with #CBEX
Zawya
2 days ago
- Business
- Zawya
Buyer beware! Crypto fraud keeps Nigerian agencies on toes
Nigerian authorities have continued to raise the red flag on digital fraud through Ponzi-style schemes, even as they track down, arrest and recover funds from the digital investment platform Crypto Bridge Exchange (CBEX), which collapsed in April after carting away more than $980 million from local investors. The anti-graft agency, Economic and Financial Crimes Commission (EFCC), confirmed that it had arrested some persons connected to the massive fraud and recovered some of the money. Ola Olukoyede, EFCC chairman, said the commission had made 'significant progress' in its investigation into the Ponzi scheme, which scammed thousands of Nigerians.'We have gone far with CBEX. We have been able to recover a reasonable amount of money,' Mr Olukoyede said. The stolen funds are in cryptocurrency. In the meantime, the Securities and Exchange Commission has issued a warning about unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Ltd.'The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Ltd is not registered to operate in any capacity in the Nigerian Capital Market,' it said in a circular issued on May 28, 2025.'The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission's dedicated portal before transacting with them.'On the CBEX case, authorities admit the investigation has been challenging due to the use of non-custodial wallets by the fraudsters -- crypto wallets not tied to any verifiable identity.'So, from the noncustodial wallet, they moved it to some wallets in Europe, eastern Europe, Cambodia…and from there, they disbursed the money. We have been able to block some of these wallets where money has not been disbursed,' Mr Olukoyede said. Two suspects have been arrested, while others, including four Kenyans, remain at large.'We are after quite a number of people declared wanted,' he said. Foreign collaboratorsMeanwhile, last week the Federal High Court in Abuja ordered the arrest and remand of six CBEX promoters over the scam. Justice Emeka Nwite, granted the EFCC's ex-parte motion seeking warrants for the suspects' arrest and detention. The suspects are Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others who have not been named. According to the complaint by EFCC, the suspects used a front company, ST Technologies International Ltd, to lure Nigerians into investing in CBEX with promises of 100 percent returns in 30 days. The court heard that the scheme had foreign collaborators and required urgent action to prevent suspects from fleeing. The judge ordered that the accused be held in EFCC custody pending further investigation and potential prosecution. According to the EFCC, ST Technologies was registered with the Corporate Affairs Commission but lacked a licence from the Securities and Exchange Commission (SEC). The commission clarified that ST's SCUML certificate does not permit it to operate as an investment firm. CBEX collapseCBEX collapsed in April, leaving investors unable to access their funds after the platform began restricting withdrawals. Users were asked to pay additional verification fees—$100 or $200 depending on account size—just before the platform shut down. Despite its collapse, the platform reportedly resumed limited operations, allowing new registrations and withdrawals in what experts described as a tactic to restore investor confidence and continue the fraud. The SEC had warned Nigerians against investing in unregistered platforms. SEC director-general Emomotimi Agama said the commission was unaware of CBEX's operations prior to its collapse.'It is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services,' the agency said. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
BBC News
26-05-2025
- Business
- BBC News
EFCC go pay di victims of CBEX back dia money?
Chairman of di Economic and Financial Crimes Commission, Ola Olukoyede don reveal say dem don get some of di money back and arrest some pipo wey bin dey behind di trading platform wey crash last month wey dem dey call CBEX. E tok dis open for interview wey bin comot on Sunday about wetin be di latest wey dey go on wit di trading platform. E tok say, "we don go far on CBEX, we don fit get some reasonable amount of money for crypto wallet wey be di same way we dem comot di money. E no get way wey you go fit give dis pipo dollars in cash witout say you go through dis way." CBEX bin first enta wahala for April afta dem bin suspend withdrawal for di platform bifor users find out say dia account balance dey read zero for di app. Tori be say na ova 1.3 trillion naira ($809,000) CBEX sweep comot from investors accounts. CBEX investment bin dey promise 100 percent return on investment for investors in one month and dis na why pipo bin rush am. Di mata make one group of angry youths bin storm CBEX office for Oke Ado area of Ibadan, di Oyo State capital, to loot items afta di trading platform bin crash. Oga Olukoyede explain give TVC tori pesin say di moves dem don make na to arrest and charge pipo go court and block di money wey dem fit block bifor e disappear for crypto. "We don make reasonable arrest and pipo dey tok. We no go tok too much make di process no come get k-leg. We still dey pursue many pipo wey we don declare wanted. We still dey investigate plenti wallet." How CBEX bin work Oga Olukoyede tok say na mostly foreigners bin get hand inside and wetin dem do na to use kontri pipo name take register do business for here. E add say di CBEX be dey work for different kontris like Egypt, Kenya and Myanmar. "Make I just give small idea of how dat tin bin work so Nigerians go know. Dem come in, most of di perpetrators na foreigners, so dem enta come hire Nigerians wey register di companies for dem, as at dat time weda dem bin sabi say wetin dem dey carry di company na fraud or not, we dey investigate dat one join. Dem register di companies come use am create awareness. In fact dem go do seminars, we get tapes of dia seminars, conferences, dem go bring in professionals, sabi pipo for capital markets. "One of dem wey be PhD Holder and specialist in capital markets dey follow us tok now. Dem go carry dem come to come teach pipo and wen you see pipo wey get dat kain levels, e go convince you. "Pipo come dey carry dia money, change am to dollar, from dollar dem go carry am put for dia crypto wallet, and from dat dem go move di money go oda those crypto wallet we dey call non custodial crypto wallet bicos dem no gey KYC, you no ift trace am to anybodi. So na from dat KYC, dem go come move am to some wallet to Europe, or Cambodia and from den di money don go. "But we don block some of di wallets wey di money neva go finish and na wia we don reach now. I still don hear say some pipo still dey di systems and Nigerians still dey fall victim. Dem need to learn form dis." EFFC boss tackle Nigerians on di greed wey fit don carry money lost inside CBEX, say e no get anywia for world wey pesin go make 100% on investment in three months. E say, "Wen di going bin dey good, wen pipo bin dey make 100%, dem no tell EFCC, but wen di bubble come burst, evribodi come dey blame EFCC say shey we no see dem. "Two weeks bifor dat bubble burst, we bin release list of 58 companies wey we investigate, file charges against and some of dem sef bin dey convicted, for pyramid scheme. Many odas bin plead guilty. We list deme out and we tell Nigerians say,dis na dia names, dey careful. We write to CBN and we write to SEC bicos we dey work wit dem". Meanwhile, di anti-graft agency bin tell BBC News Pidgin say dem dey collaborate wit di International Criminal Police Organisation (Interpol) and di Federal Bureau of Investigation (FBI) and odas to find dose wey dey behind di CBEX platform and how dem fit recover some money.
Coin Geek
13-05-2025
- Business
- Coin Geek
$800M CBEX scam resumes operations in Nigeria despite crackdown
Getting your Trinity Audio player ready... Two weeks ago, the Crypto Bridge Exchange (CBEX) collapsed and allegedly sank with $800 million worth of users' deposits. The Nigerian government sprang into action, pledging to pursue the operators and recover the funds. However, CBEX has quietly reopened and is now recruiting new investors with the same promises of astronomical returns, according to local reports. Repackaged deception Before it collapsed, CBEX had over 600,000 users, mainly from Nigeria, but with a presence in Kenya. It lured investors with promises of 100% returns in 30 days, claiming to generate profits through AI-powered digital currency trading strategies. However, it was all a house of cards, and when it crashed, it wiped out hundreds of millions of dollars. The Ponzi scheme is back, however. Sources told one Nigerian outlet that the platform once again allows new users to register, trade and even withdraw their profits. However, there's a catch: only the new accounts can reportedly withdraw their profits. Older accounts, which lost money when CBEX suspended withdrawals, must await 'an ongoing investigation and audit by the UK government,' which will be completed in 60 days. The operators have allegedly dismissed scam claims. They say that their AI-powered bot had a mishap and lost some of the money. They also claim that the figure has been greatly exaggerated and is closer to ₦126 billion ($78 million). 'According to the latest information shared, previous investors can only trade but not withdraw because the United Kingdom government is carrying out an audit on their financial account, which will be completed between 30 to 60 days. Hence, the reason why previous investors cannot withdraw their funds yet,' the source, whose identity was withheld, stated. However, a lot doesn't add up, such as why the platform reopened if it's under investigation by U.K. authorities or why the operators have not worked with Nigerian authorities to refund investors. When asked why the probe is not being handled by the Nigerian government, the operators stated, 'The firm is registered in the United Kingdom, not in Nigeria. They merely extended their operations here. In fact, they also have branches in Kenya, South Africa, and Egypt.' Red flags abound; according to another local outlet, CBEX demands that older investors who wish to withdraw their funds after the probe is completed must pay $100 if they hold less than $1,000, or $200 if their holdings exceed that amount. 'And we have started seeing people put in these funds to get back their money, and are using it to trade now, as I talk to you,' one operator told the outlet. Regulatory blame games As CBEX continues its deception, Nigerian authorities are engaging in blame games over who is responsible for one of the country's biggest Ponzi schemes. As we previously reported, the Securities and Exchange Commission (SEC) insisted it was not responsible since CBEX had never registered with the agency. Now, the Economic and Financial Crimes Commission (EFCC) is taking the same route, but this time, it's shifting the blame to investors. In a televised interview, the EFCC boss, Ola Olukoyede, said investors should have reported CBEX months before it collapsed. 'And you know what, when the going is good. Nobody makes noise, nobody talks. But it is when the bubble bursts that EFCC is dragged into it,' he told Channels TV. The EFCC doesn't have a 'magic wand' that can detect all the scams that Nigerians are directing their funds to, he added. 'So, we wait, most times, until the bubble bursts.' Olukoyede further described CBEX as a 'very pathetic case for Nigerians who have lost their money,' but insisted that the EFCC is unlikely to recover the lost funds. While it distanced itself from the scam, the EFCC had earlier claimed to be pursuing some of the scam operators. A week ago, the agency published the names of eight suspects—four Nigerians and four Kenyans allegedly living in Lagos—whom it says were among the top brass at the firm. The EFCC boss said it's working with Kenyan and international authorities to nab the suspects. However, history indicates that pursuing the Kenyan suspects might prove futile; when the Kenyan executive at Binance escaped detention in Abuja, the EFCC tried to pursue him in the East African nation, but Kenyan authorities were reportedly very uncooperative, and he was never arrested. Watch: Breaking down solutions to blockchain regulation hurdles title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Zawya
06-05-2025
- Business
- Zawya
Nigeria: Lessons from CBEX scam
For how long will Nigerians continue to lose their hard money on fake online investments? In years gone by, certain individuals introduced MMM to dupe unsuspecting members of the public to the tune of N12 billion. I vividly remember that the CBN (Central bank of Nigeria) made a press release then to warn Nigerians to desist from investing their money in MMM. A former senate president, Dr Bukola Saraki, also warned Nigerians not to invest their money in MMM. MMM later crashed and those who invested their money in it wept while others reportedly committed suicide. Some of the victims of MMM are suffering from high blood pressure till date. Then came CBEX. Instead of Nigerians to report them to the EFCC so as to get the organisers arrested, Nigerians did not care to ask relevant questions before investing their money. Those who invested their money in CBEX are currently in pains now as some of them took bank loans and sold their property to invest in the Ponzi scheme. I wrote about Ponzi schemes in Nigerian Tribune newspaper on November 29, 2021 in a piece with the headline 'On fake online investments.' I deem it fit once again to use this medium to inform Nigerians both home and abroad that there is no business that can give you 100 percent profit within 35 days of investment. Anyone who introduces you to such investment must be handed over to police for investigation. Victims have learnt their lessons the hard way. It is my hope that Nigerians will not invest their money in any unverified online investment again. I sympathise with Nigerians who lost their money to CBEX.
Business Mayor
06-05-2025
- Business
- Business Mayor
‘Quick-Money' Nigerian Crypto Platform's Withdrawal Plan Met With Suspicion
The troubled Nigerian digital asset platform Crypto Bridge Exchange (CBEX) recently announced new withdrawal options in an effort to restore investor confidence. Sources revealed that the company made this announcement after facing claims of collapse. Under the new rules, investors with up to $1,000 in the platform must pay a $100 fee to withdraw 50% […] READ SOURCE
