Two individuals have been detained by the Economic and Financial Crimes Commission (EFCC) in connection with the purported loss of over N1.3 trillion to Crypto Bridge Exchange (CBEX).
Even though four Nigerians, including two siblings, have been linked to the company, the anti-graft agency has not revealed their identities.
Although another British national has been implicated, the full scope of his involvement is still being investigated.
In order to work around the clock, the anti-graft agency’s investigative agents delayed Friday’s public holiday.
According to a reliable source, the EFCC has made progress in apprehending two people.
“With the two suspects, we have initiated a preliminary investigation,” the source stated. The investigation into CBEX’s entry into the country’s digital asset trading market is multifaceted. The probe is being personally led by EFCC Chairman Ola Olukoyede, who arrived back in the nation on Thursday.
We are currently searching five people, including a Briton, but we are taking our time to prevent incorrect profiling. All suspects, however, are now under observation.
The suspects’ names have not yet been made public, but they are assisting in shedding light on the company’s formation, its funders and promoters, the secondary companies it uses, how it was registered, the financial institutions involved, and the functions of the Corporate Affairs Commission (CAC).
“We have a lot of angles, and we will undoubtedly uncover the company’s backers.”
The insider added, “The investigation is still at a preliminary stage, we don’t want to jeopardize it,” when asked why the two apprehended suspects had not been made public.
Investor losses of N1.3 trillion have been reported; our investigations will confirm this.
“Even though we are aware of the panic, we must act quickly to fulfill our duties.”
Because CBEX was not registered in the Securities and Exchange Commission’s (SEC) registry, regulatory action was not conceivable, as indicated yesterday by Dr. Emomotimi Agama, the SEC’s director-general.
During a Monday interview, Dr. Agama emphasized that the SEC was not aware of CBEX’s activities until lately and restated the commission’s authority to monitor only recognized institutions.
“The SEC’s primary duty is to monitor regulated institutions within the parameters of its resources,” the SEC chief stated.
In actuality, registration is what distinguishes regulation. In the absence of registration, regulation becomes challenging.
Agama clarified that CBEX had never had an SEC registration. There had been no official reports or questions about CBEX as an investing platform sent to the commission.
“It is extremely pitiful that Nigerians will lose their money in this manner,” he bemoaned. “However, we must state unequivocally that the notion that the SEC is not functioning is completely unfounded.”
Agama declared: “Such assertions are totally untrue, in capital letters,” rejecting claims that CBEX was in the process of gaining certification from the commission. He further cautioned that no business may function first and then pursue SEC accreditation.
“That in itself is a warning sign. No organization submits an application to the SEC after start-up. You are unable to conduct business without an SEC license.
The head of the SEC asserts that a registration with the Corporate Affairs Commission (CAC) does not imply SEC regulatory approval.
He pointed out that some businesses frequently seek certificates under false classifications, fooling the public.
According to Agama, these individuals might occasionally be dishonest and manipulative. The CAC might unintentionally provide them a certificate, but not for investing services.
Agama responded to strong criticism of the SEC’s public engagement initiatives by stating that the commission has increased awareness campaigns, arranging enlightenment events across the country and releasing a podcast two months ago.
Before investing money, he advised Nigerians to be cautious and confirm investment prospects.
“Contact a stockbroker, financial advisor, lawyer, or investment advisor if you are unsure about any investment,” he suggested.
He advised Nigerians to take their time and make sure everything is in order before making any investments since they are very serious business.
Agama said that CBEX is being investigated and that the commission is collaborating with other organizations to retrieve funds and bring the offenders to justice while discussing the potential for reparations and legal action.
“The investors will undoubtedly receive a refund of whatever we are able to recover. We’ll hold them accountable,” he promised.
He reminded operators of the new provisions under the Investment and Securities Act (ISA) 2025, which imposes a N20 million fine and up to 10 years imprisonment for promoting unregistered investment platforms, and urged the media, particularly online influencers, to act responsibly and refrain from spreading fraudulent schemes.
“The penalty is N20 million in the first instance and 10 years in prison if you are a blogger, influencer, and you assist in engaging in this type of fraudulent activity,” Agama said.
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