Nigeria’s Economic and Financial Crimes Commission (EFCC) has stated that it has traced funds linked to the collapsed Crypto Bridge Exchange (CBEX) digital trading platform to at least four countries. The scheme is alleged to have defrauded over 600,000 Nigerians.
Speaking on Channels Television, EFCC Chairman Ola Olukoyede said that while efforts are underway to recover the funds, it is likely “practically impossible” to provide full restitution to all victims.
Mr. Olukoyede revealed that several accounts have been blocked and funds frozen, although he did not disclose the specific amounts involved. He explained that the majority of the transactions were conducted in cryptocurrency and routed through digital wallets located outside of Nigeria’s jurisdiction.
“We have traced to three, four countries now. In fact, the principal parties behind the entire scheme… most of them are foreigners, they are not within our jurisdiction, and you know what that entails,” the EFCC boss said. He acknowledged the difficulty in recovering assets held overseas but stated that the agency had managed to freeze “some reasonable amount of funds.”
Mr. Olukoyede cautioned against expecting full refunds for all investors, saying, “I will not sit down and tell you that we are going to restore every victim. It will become practically impossible because quite a certain amount of money has been dissipated and not within our system.”
He added that the EFCC has arrested three suspects who are currently in custody and have provided “very useful statements” to investigators. The agency has also established contact with its counterparts in other countries to aid the investigation.
The collapse of CBEX in April left many Nigerian investors unable to withdraw their funds. The platform had offered unusually high returns, leading the Securities and Exchange Commission (SEC) to declare it unregistered and illegal.
In recent developments, a Nigerian federal high court granted the EFCC permission to arrest and detain six promoters of CBEX in connection with an alleged $1 billion investment fraud. The EFCC has also declared a foreign national, Elie Bitar, wanted for his alleged involvement in the scheme, adding his name to a list of eight Nigerians previously sought by the agency.
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