CBEX Crypto Fraud Case: Promoters Granted Bail, MD Awaits Decision
The Federal High Court in Abuja has taken action regarding the alleged large-scale investment fraud involving Crypto Bridge Exchange (CBEX).
Avwerosuo Otorudo and Chukwuebuka Ehirim, two individuals linked to CBEX, have been granted bail by Justice Mohammed Umar. Each must provide a bond of N10 million and present two sureties with property of equivalent value within the court’s jurisdiction. The court will verify their residences.
The Economic and Financial Crimes Commission (EFCC) has charged them with operating illegally and promising unrealistic returns of up to 88% without proper regulatory approval. Their trial is set to begin on October 13. The EFCC stated they were charged for “unauthorized investment activities and collecting public funds on false pretenses.”
Bail Hearing for ST Technologies MD
In a related development, Adefowora Abiodun, the Managing Director of ST Technologies International Limited, is also seeking bail. He faces an amended eight-count fraud charge connected to CBEX. Abiodun and his company pleaded not guilty on July 9.
His lawyer, Babatunde Busari, argued for bail, citing Abiodun’s need for urgent eye surgery and his voluntary surrender to investigators. Busari also mentioned that Abiodun has been detained for over 80 days and that the financial claims against him total N20 million.
However, the opposing EFCC counsel, Fatsuma Mohammed, argued against bail, stating that Abiodun is a flight risk, especially given that a conviction could lead to a seven-year sentence.
Justice Umar will rule on Abiodun’s bail application on July 25, and he remains in EFCC custody until then.
CBEX: At the Heart of a Billion-Dollar Scam
CBEX, which is now shut down, is accused of defrauding investors of over $1 billion in cryptocurrencies. Victims reportedly deposited their assets, primarily USDT stablecoins, into CBEX wallets, lured by promises of returns as high as 100%.
However, users were soon locked out and could not access or withdraw their investments.
EFCC investigations revealed that while ST Technologies was registered as a company, it lacked the necessary licenses from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to conduct investment operations, making its activities illegal. The EFCC’s cybercrimes unit found strong initial evidence of “investment fraud using a crypto front.”
Previously, Justice Emeka Nwite had authorized the arrest of six CBEX promoters, including Abiodun, Otorudo, and Ehirim. An earlier bail request for these three was denied on June 30 due to strong evidence and the serious nature of the allegations.
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