A Federal High Court judge has authorised the immediate arrest of six individuals tied to an alleged cryptocurrency investment scheme that reportedly defrauded victims of more than $1 billion.
Presiding Justice Emeka Nwite issued the detention order following an urgent application by the Economic and Financial Crimes Commission (EFCC), which accused the suspects of operating a sophisticated Ponzi scheme through Crypto Bridge Exchange (CBEX).
The named defendants – Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim – are believed to have fled their last known residences, prompting the anti-graft agency to seek judicial intervention.
EFCC counsel Fadila Yusuf presented compelling evidence showing how the accused allegedly lured investors with promises of 100% returns on cryptocurrency investments before abruptly shutting down the CBEX platform.
Court documents reveal the scheme followed a classic fraud pattern: early investors received payouts to build credibility before the operators disappeared with the bulk of deposits. Investigators estimate total losses could exceed $1 billion based on preliminary findings.
“The nature of these offences requires immediate action to prevent further harm to the public and preserve evidence,” Yusuf argued before the court. She emphasised that the defendants’ current whereabouts remain unknown despite extensive searches.
The fraud allegedly operated through a shell company, ST Technologies International Limited, which prosecutors say lacked proper registration with financial regulators. While incorporated with the Corporate Affairs Commission, the firm never obtained required approvals from the Securities and Exchange Commission to solicit public investments.
Investigators uncovered that victims were instructed to convert assets into USDT stablecoins before transferring funds to wallets controlled by the accused. The platform initially showed fake account balances before becoming completely inaccessible in what appears to have been a planned exit strategy.
Justice Nwite’s ruling empowers EFCC operatives to execute immediate arrests anywhere in Nigeria, detain suspects for thorough interrogation and place the individuals on international watch lists.
Financial crime experts note this case highlights growing concerns about cryptocurrency-related fraud in Nigeria, which has emerged as one of Africa’s most active digital currency markets. The EFCC has recently intensified scrutiny of investment platforms following multiple high-profile scams.
Authorities urge potential victims to come forward as investigations continue. The court has scheduled a follow-up hearing to review progress in the case within 30 days.
Legal analysts suggest this could become one of Nigeria’s largest financial fraud prosecutions if the EFCC’s allegations prove accurate in subsequent court proceedings. The commission maintains it has gathered substantial evidence, including digital transaction records and victim testimonies.
For now, the hunt continues for the six accused individuals, with Interpol expected to join the search if they’ve fled beyond Nigeria’s borders. The case represents a significant test of Nigeria’s ability to regulate its booming but sometimes volatile cryptocurrency sector.
