Court Approves Arrest of CBEX Promoters: What This Means for Crypto Investors in Nigeria
The Federal High Court in Abuja, Nigeria, has greenlit the arrest and detention of six promoters behind CBEX, a controversial cryptocurrency exchange accused of defrauding investors. This landmark ruling sends shockwaves through Nigeria’s booming crypto market—raising urgent questions about regulation, investor safety, and the future of digital assets in Africa’s largest economy.
The ex parte motion filed by the Economic And Financial Crimes Commission (EFCC) on April 23, 2025 identifies six respondents: Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.
Breaking Down the CBEX Scandal: What Went Wrong?
The Securities and Exchange Commission (SEC) had earlier flagged CBEX for operating without a license, but the court’s latest decision confirms deeper troubles:
✔ Allegations of a $1 billion Ponzi scheme – Promises of “200% returns” lured thousands.
✔ Sudden platform shutdown – Investors locked out of accounts since February.
✔ Interpol involvement – Suspects may face extradition if outside Nigeria.
How to Recover Your Money (If You Invested in CBEX)
If you’re affected, act NOW:
- File a complaint with the EFCC or SEC Nigeria.
- Join class-action lawsuits – Legal groups are consolidating cases.
- Track wallet addresses – Some funds were moved to Binance and KuCoin.
⚠️ Crypto Regulation in Nigeria: New Crackdown Coming?
This case could trigger stricter laws:
✔ Mandatory licensing for all exchanges (like Binance’s recent $10M fine).
✔ Bank freezes on suspicious crypto transactions.
✔ Tax audits for traders withdrawing over ₦10M monthly.
Safe Alternatives to CBEX Right Now
Stick to SEC-approved platforms:
- Yellow Card (Licensed in 12 African countries)
- Luno (Backed by Digital Currency Group)
- Bitnob (Regulated by Nigeria’s CBN)
Expert Take: “This Won’t Be the Last Crypto Collapse”
Fraudsters target Nigeria because of poor financial literacy. Always DYOR [Do Your Own Research] before investing.
Discover more from TruthPost
Subscribe to get the latest posts sent to your email.
