The Federal High Court in Abuja on Monday dealt a significant blow to the promoters of Crypto Bridge Exchange (CBEX), refusing bail in the alleged $1 billion fraud that has shaken Nigeria’s burgeoning crypto-investment landscape.
Justice Emeka Nwite ruled that the evidence against Adefowora Abiodun Olanipekun, Avwerosuo Otorudo and Chukwuebuka Ehirim was “strong”, noting that a formal charge had been filed and was awaiting assignment – rendering any bail application premature.
He held that “the interest of justice will be met by taking this application to the court where the charge is pending for arraignment and hearing simultaneously. Hence, the application is refused”.
This ruling follows the EFCC’s April 24 order granting it leave to arrest and detain six CBEX operators, obtained ex parte on the basis that their detention was necessary pending conclusion of investigations into the alleged scam.
Among those initially remanded were Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim, all accused of orchestrating a scheme that lured Nigerians into converting life savings into stablecoins with promises of astronomical returns.
CBEX marketed itself as an AI-powered trading platform offering 100 per cent returns in 30 days – an implausible guarantee that mirrored classic Ponzi mechanics.
On 6 April 2025, users began reporting withdrawal failures; by mid-April, the site had collapsed entirely, trapping investor funds estimated at over $1 billion.
Irate depositors stormed CBEX offices in Lagos and Ibadan, smashing gates in search of management, as social media buzzed with horror stories of wiped-out savings and shattered livelihoods.
This case is symptomatic of wider vulnerabilities in Nigeria’s digital finance sector.
Between 2016 and 2025, Nigerians lost billions to successive Ponzi schemes – from MMM’s M18 billion collapse in 2016, through Ultimate Cycler and Twinkas – illustrating a persistent pattern of fraud exploiting regulatory gaps and financial illiteracy.
Experts warn that weak enforcement, combined with economic hardship, creates fertile ground for such scams, as desperate investors chase quick gains they cannot resist.
For the EFCC, this high-profile prosecution underscores a record-breaking year: in 2024 the Commission secured 4,111 convictions and recovered over N364 billion, its largest haul since inception.
Cybercrime and money laundering were among the most prevalent offences, reflecting the agency’s sharpened focus on internet-enabled fraud.
Yet critics argue that conviction statistics must translate into stronger deterrence and swifter asset recovery to truly shield Nigerians from financial predators.
The defence had urged variation of the April remand order, citing prolonged detention and the first defendant’s purported ill health, but Justice Nwite dismissed these pleas.
He noted that no substantive evidence showed the EFCC could not facilitate medical attention if required, reinforcing that procedural irregularities would not outweigh the gravity and scale of the alleged offence.
Moving forward, the court’s decision to refuse bail will see the defendants formally arraigned once their charge is assigned.
Observers expect aggressive prosecution by the EFCC, which remains in receipt of numerous petitions from victims.
The legal battle will probe not only individual culpability but also the deep-seated failings in Nigeria’s regulatory framework over digital asset trading.
This sensational ruling should serve as a clarion call: while cryptocurrency promises innovation, without robust oversight and public education, it becomes a vector for large-scale fraud.
The CBEX saga reminds investors to exercise due diligence and regulators to act judiciously – lest millions more fall prey to the next “impossible” return scheme.
Atlantic Post writer Peter Jene contributed to this report.
