EFCC Traces CBEX Fraud Funds to Four Countries, Warns Full Recovery May Be Impossible
The Economic and Financial Crimes Commission (EFCC) has made significant strides in its investigation of the collapsed Crypto Bridge Exchange (CBEX) scheme, which reportedly led to the loss of approximately ₦1.3 trillion in investor funds. EFCC Chairman Ola Olukoyede disclosed that the commission has traced funds linked to the fraudulent scheme to at least four countries, highlighting the complex, cross-border nature of the financial crime.
In a recent appearance on Channels Television’s “Politics Today,” Olukoyede explained that while some accounts have been blocked and funds frozen, the majority of the illicit transactions were conducted in cryptocurrency and routed through wallets outside Nigeria’s jurisdiction. This international dimension complicates recovery efforts and makes full restitution to victims highly challenging.
“We have been able to block some accounts. We have been able to freeze some funds, which I will not be able to give you a figure, but some reasonable amount of funds, we have been able to freeze,” Olukoyede stated. He emphasized that many of the principal parties behind the scheme are foreigners operating beyond Nigeria’s legal reach, further hindering the recovery process.
The EFCC has already made arrests in connection with the CBEX fraud. Three suspects are currently in custody and have provided valuable information to investigators. Additionally, the commission has declared several individuals wanted, including foreign nationals, for their alleged roles in the scam. The Securities and Exchange Commission (SEC) has confirmed that CBEX was not registered with the agency, and therefore, it cannot assist victims in recovering their investments.
Olukoyede acknowledged the difficulties in recovering all the lost funds, stating, “I will not sit down and tell you that we are going to rehabilitate every victim. It will become practically impossible because quite a certain amount of money has been dissipated and not within our system.” He noted that the EFCC is collaborating with foreign counterparts to trace and recover assets, but the process is complex and time-consuming.
The CBEX scheme, which promised high returns on investments through a digital asset-trading platform, attracted numerous investors before its sudden collapse. In April, users reported being unable to withdraw funds, prompting widespread complaints and an investigation by the EFCC. The Federal High Court in Abuja has granted the commission’s request to arrest six CBEX promoters over a $1 billion investment fraud allegation.
The EFCC’s efforts to recover funds and prosecute those responsible for the CBEX fraud underscore the challenges of combating financial crimes in the digital age. The commission continues to urge the public to exercise caution when investing in unregulated platforms and to report any suspicious activities to the appropriate authorities.
As the investigation progresses, the EFCC remains committed to pursuing justice for the victims of the CBEX scheme, despite the significant obstacles posed by the international scope of the fraud