Crypto Fraud Case: Court Denies Bail to CBEX Promoters as $1bn Allegations Deepen

DDM News

The Federal High Court in Abuja has declined to grant bail to three detained promoters of the controversial Crypto Bridge Exchange (CBEX), who are accused of being involved in a cryptocurrency fraud exceeding $1 billion.

Diaspora Digital Media (DDM) reports that Justice Emeka Nwite, in a ruling delivered on Monday, held that the affidavit evidence submitted by both the prosecution and defence demonstrated that a strong case had been established against the defendants.

The judge emphasized that the seriousness of the allegations and the available evidence warranted the continued detention of the suspects pending further legal proceedings.

The Economic and Financial Crimes Commission (EFCC) had earlier secured an order on April 24 to arrest and detain six CBEX operators in connection with the alleged fraudulent scheme. The order followed an ex parte motion filed by EFCC counsel, Yusuf.

The six defendants include Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.

According to the EFCC, the defendants operated through their firm, ST Technologies International Limited, to lure unsuspecting investors with promises of up to 100% returns on cryptocurrency investments.

Victims were allegedly encouraged to convert their digital assets into stablecoin (USDT) and deposit the funds into wallets controlled by the accused.

Initially, investors could access and monitor their portfolios, but once deposits reportedly surpassed $1 billion, the CBEX platform became inaccessible and withdrawals were blocked.

Investigations revealed that although ST Technologies International Limited was registered with the Corporate Affairs Commission (CAC), it was not licensed by the Securities and Exchange Commission (SEC) to provide investment services.

The EFCC also disclosed that the defendants had vacated their last known addresses in Lagos and Ogun States, necessitating a warrant of arrest to facilitate their apprehension.

At a hearing on June 11, defence lawyers Babatunde Busari and Justice Otorudo urged the court to grant bail, citing constitutional provisions on personal liberty and medical concerns for the first defendant, Abiodun.

However, the EFCC opposed the bail application, arguing that the alleged fraud surpassed the budgets of several Nigerian states and that new complaints from additional victims were still emerging.

In his ruling, Justice Nwite acknowledged that formal charges had been filed and were awaiting assignment to a trial court.

He dismissed the defence’s claims about urgent medical needs, noting that the EFCC was capable of providing adequate healthcare during detention.

“In view of the foregoing, and considering the nature of the case, as well as the fact that a formal charge has been filed, I hold that the interest of justice will be best served by transferring this application to the court where the charge is pending for simultaneous arraignment and hearing of the bail application,” the judge stated.

The court, therefore, refused the bail application and directed that the matter be transferred to the trial court for further proceedings.

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