A Federal High Court has given the green light for the arrest and detention of six individuals believed to be key promoters of CBEX, a controversial cryptocurrency and investment platform under investigation for alleged financial fraud.
The court’s decision followed an application filed by the Economic and Financial Crimes Commission (EFCC), which accused the CBEX promoters of operating a scheme that defrauded thousands of unsuspecting Nigerians through false investment promises and unregistered financial activities.
According to the EFCC, the six suspects – whose names were withheld pending official charges – played active roles in running the CBEX platform, which promised high returns on cryptocurrency and forex investments. The platform reportedly collapsed after months of operation, leaving many investors stranded and unable to recover their funds.
Justice Adebayo J. Musa, who presided over the hearing, approved the request for arrest and temporary detention after reviewing preliminary evidence presented by the anti-graft agency. He noted that the suspects posed a flight risk and that their detention was necessary to prevent interference with ongoing investigations.
“The court is satisfied with the justification for this application,” Justice Musa stated. “Law enforcement agencies may proceed with the arrest and remand of the listed individuals pending further action.”
The EFCC, in a statement released after the ruling, revealed that it had been receiving numerous petitions from victims who claim to have lost their savings to the CBEX platform. The commission also urged the public to come forward with any useful information that could assist in tracking down additional individuals connected to the scheme.
Many of the alleged victims were young investors and small business owners enticed by CBEX’s aggressive online marketing campaigns and promises of fast returns. Financial analysts have since warned the public to be wary of similar platforms that operate outside regulatory oversight.
As investigations continue, the court's approval of the arrests marks a significant step in Nigeria's broader crackdown on digital financial fraud and Ponzi-style investment scams. The EFCC assured the public that justice would be served and that efforts to recover stolen funds were underway.
The suspects are expected to be arraigned formally once investigations are concluded and charges are filed.
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