Court approves arrest, detention of 6 CBEX promoters

Court approves arrest, detention of 6 CBEX promoters

By Jeffrey Agbo

A Federal High Court in Abuja has granted the Economic and Financial Crimes Commission (EFCC) permission to arrest and detain six individuals accused of orchestrating a cryptocurrency investment fraud exceeding $1 billion.

Justice Emeka Nwite issued the order on Thursday following an ex parte application by EFCC counsel Fadila Yusuf.

The suspects — Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim — are said to be behind the operations of Crypto Bridge Exchange (CBEX), allegedly used to defraud investors.

The EFCC told the court it received intelligence in April linking the suspects to a fraudulent scheme carried out through ST Technologies International Limited, which it said partnered with CBEX to lure investors with promises of returns up to 100%.

“The victims were required to convert their digital assets into USDT, a stablecoin, and deposit them into the suspects’ cryptocurrency wallets,” an affidavit filed by the EFCC stated. The agency noted that investors initially had access to the platform to monitor funds, but the site was shut down after more than $1 billion had been deposited.

Further investigations revealed that ST Technologies was registered with the Corporate Affairs Commission but was not licensed by the Securities and Exchange Commission to operate as an investment firm.

Yusuf told the court the suspects had absconded from their known addresses in Lagos and Ogun States. “A warrant of arrest is necessary to place the suspects on a red watch list and ensure they are apprehended to face justice,” she said.

In his ruling, Justice Nwite said, “I am of the view, and I so hold, that the application is meritorious. Consequently, the application is granted as prayed.”