EFCC Recovers Funds, Makes Arrests in N1.3 Trillion CBEX Crypto Scam!

 

In a significant breakthrough for thousands of distressed investors, the Economic and Financial Crimes Commission (EFCC) has announced it has recovered some funds from the collapsed Crypto Bridge Exchange (CBEX) trading platform. This positive development comes after the platform spectacularly crashed last month, leaving many Nigerians grappling with reported losses exceeding a staggering N1.3 trillion.

Speaking in an exclusive interview with TVC yesterday, Sunday, May 25th, the Chairman of the EFCC, Ola Olukoyede, revealed that the anti-graft agency has made substantial progress in its investigation into the massive crypto scheme.

 "We have gone far with CBEX. We have been able to recover a reasonable amount of money," Olukoyede stated, offering a glimmer of hope to affected individuals.

Olukoyede explained the complex nature of the recovery process. While the stolen assets were in cryptocurrency, the EFCC has successfully traced and retrieved a portion of it. However, he noted the inherent challenges in converting these digital assets back into traditional currency, explaining that it requires navigating intricate crypto processes. 

"Even though in the crypto wallet, the same way the money was taken from them. There is no way you will get them in dollars. There is no way you get the dollars in cash without necessarily going through the same process," he clarified.

Beyond the recovery, the EFCC has also made crucial arrests in connection with the CBEX fraud. "We have made a reasonable arrest," Olukoyede confirmed, though he refrained from disclosing extensive details to avoid disrupting ongoing operations. He added that the agency is actively pursuing other perpetrators who are currently on the run and have been declared wanted.

The investigation, however, has not been without its hurdles. Olukoyede highlighted that the fraudsters utilized "non-custodial wallets," which essentially lack attached identities (KYC - Know Your Customer information), making it exceedingly difficult to trace the criminals directly. 

"So, from the noncustodial wallet, they moved it to some wallets in Europe, Eastern Europe, particularly Cambodia and from there, they dispersed the money. We have been able to block some of these wallets where money has not been dispersed," he detailed, revealing the global reach of the EFCC's tracing efforts.

Despite these successes, the EFCC boss issued a stern warning, cautioning the public that fraudsters are still active and that "Nigerians are still falling victim." 

This caution is particularly poignant given that CBEX itself reportedly resumed operations, announcing fresh withdrawal options, in a bid to restore investor confidence after its dramatic collapse in April, which saw users' account balances suddenly disappear.

The CBEX saga serves as a powerful reminder of the inherent risks in unregulated digital investment platforms and the critical importance of due diligence. The EFCC's continued efforts are a testament to Nigeria's commitment to combating sophisticated financial crimes in the digital age.