The Economic and Financial Crimes Commission (EFCC) has begun an intensive investigation into the alleged ₦1.3 trillion fraud linked to CryptoBank Exchange (CBEX), a digital investment platform that abruptly shut down operations earlier this week, leaving thousands of Nigerian investors in financial ruin.
CBEX, which operated as a cryptocurrency trading and investment outlet, reportedly collapsed on Monday, April 14, 2025. The platform is said to have been run by a coalition of foreign nationals in partnership with Nigerian associates. Preliminary findings suggest the platform may have swindled investors out of over $847 million (approximately ₦1.3 trillion).
EFCC, INTERPOL Join Forces on International Fraud Trail
Confirming the development on Tuesday, EFCC spokesperson Dele Oyewale disclosed that the anti-graft agency had already begun monitoring CBEX prior to its collapse. He added that the EFCC is now working alongside the International Criminal Police Organisation (INTERPOL) to track down both foreign and local operators behind the suspected scam.
“We had intelligence before the incident occurred. Our investigations had already commenced. Now that the platform has officially collapsed, we are moving swiftly to identify and apprehend the key figures involved,” Oyewale told The Punch.
He noted that the EFCC is treating the matter as part of a wider crackdown on fraudulent digital investment schemes plaguing the country. “We’ve previously warned the public about at least 58 companies involved in questionable activities, and we are currently investigating many others,” he added.
Targeting Both Local and Foreign Perpetrators
Oyewale assured that where recovery of funds is possible, the commission would pursue restitution for victims, and that legal action would follow wherever evidence supports prosecution.
“Our job is clear we will recover stolen funds where feasible and ensure that justice is served. While our local investigations continue, we are collaborating with INTERPOL to trace the international suspects,” he said.
The EFCC also warned that several similar schemes are still active across Nigeria and called on the public to remain vigilant.
CBEX: Promises of Profit, Traces of Deceit
CBEX gained traction by promising mouthwatering returns of up to 100% within 30 days, luring unsuspecting Nigerians with aggressive social media campaigns and online influencers who endorsed the platform. However, the platform’s operations soon turned suspicious, beginning with restrictions on fund withdrawals.
On April 9, 2025, users reported being unable to access their balances, with CBEX instead demanding verification fees ranging between $100 and $200, depending on the user’s account size.
According to one of the platform’s final messages to its users, “We require a deposit of $100 for accounts below $1,000 and $200 for accounts exceeding $1,000. Please keep your deposit receipts to prove authenticity during withdrawal reviews.” Many investors paid these fees hoping to retrieve their funds only to discover later that their accounts had been emptied.
A Digital Mirage
CBEX had reportedly changed its website domain several times between January 2024 and February 2025 to avoid detection. Despite these red flags, thousands of Nigerians continued to invest heavily in the hopes of earning fast profits. The use of peer referral systems further fueled its rapid spread.
Financial analysts say CBEX operated as a typical Ponzi scheme using new investors’ money to pay early participants until the system inevitably collapsed under its own weight. By the time the platform went offline, it had already amassed a large pool of victims from across the country.
Authorities Urge Caution
With digital fraud cases on the rise, especially involving crypto and investment platforms, the EFCC has renewed its call for Nigerians to be cautious and verify the legitimacy of platforms before investing.
“This case highlights why Nigerians must avoid any investment promising quick, unrealistic returns. These are classic Ponzi tactics designed to exploit economic desperation,” Oyewale concluded.
