The Digest:
Two promoters of the now-defunct CBEX cryptocurrency scheme have been arraigned by the EFCC for promising Nigerians an 88% return on investments without securing approval from the Securities and Exchange Commission (SEC).
Key Points:
- EFCC arraigned Avwerosuo Otorudo and Chukwuebuka Ehirim for fraud and violating investment laws.
- The defendants allegedly promised an 88% return on investments through CBEX without SEC consent.
- The charges include operating as an unauthorized financial institution under Nigerian law.
- The case is linked to an alleged N1.3 trillion CryptoBank Exchange scam.
- EFCC’s investigation is ongoing, involving international agencies like Interpol.
- Bail applications were filed, but the court postponed ruling until July 18, 2025.
- The SEC has taken steps to prevent future crypto scams, with regulatory reforms underway.
The EFCC’s arraignment of CBEX promoters highlights the ongoing fight against fraudulent investment schemes in Nigeria. With charges involving a massive scam, the case is a significant step in protecting investors and enforcing financial regulations.
Sources: Nairametrics, Vanguard
