The Economic and Financial Crimes Commission (EFCC) has launched a full-scale investigation into the sudden collapse of a digital investment platform, CryptoBank Exchange (CBEX), following reports that investors may have lost over N1.3 trillion to what appears to be one of the country’s largest online investment frauds in recent years.
The anti-graft agency confirmed it is working with the International Criminal Police Organisation (INTERPOL) to track down both the foreign and Nigerian operators behind the platform, which was allegedly run by foreign nationals in partnership with local collaborators.
CBEX, which operated for several months and promised 100 per cent returns within 30 days, shocked users on April 9, 2025, by suddenly restricting withdrawals. Investors later discovered that their account balances had been wiped, and they were told to make additional deposits to regain access—an action that confirmed growing fears the platform was a Ponzi scheme.
Thousands of Nigerians, lured by social media promotions and peer referrals, poured millions into the platform. But just days after the restriction, the platform crashed completely on April 14, with its website disappearing and offices in major cities closing shop.
EFCC spokesperson Dele Oyewale confirmed the commission had already been investigating CBEX before the collapse. He said the agency had intelligence about its activities and was monitoring it closely.
“We had our intelligence before the incident. We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in,” Oyewale said.
He added that the EFCC is committed to working with other relevant agencies and with INTERPOL to trace the international elements of the fraud, recover stolen funds where possible, and prosecute those involved.
“We are actively working to handle the CBEX situation. We will collaborate with other regulatory agencies to ensure that Nigerians are protected from this kind of scheme,” he added.
Unconfirmed reports estimate that investors lost around $847 million, mostly in USDT (a cryptocurrency known as Tether), with the actual figure likely to rise as more victims come forward.
Many victims said they believed the withdrawal restriction was a temporary glitch. However, CBEX soon issued a suspicious message demanding further deposits from users to “verify their accounts” before they could withdraw any funds.
“All accounts need to undergo the following verification steps to ensure their authenticity. For accounts with funds below $1,000 before any losses, a deposit of $100 is required. For accounts with funds exceeding $1,000, a deposit of $200 is required…”
This tactic, which fraud experts say is commonly used in exit scams, caused even more unsuspecting users to invest further in a last attempt to retrieve their funds.
According to findings, CBEX had changed its domain name multiple times between January 2024 and February 2025, a move often linked with attempts to evade detection and regulation. Its aggressive marketing on platforms like Facebook, WhatsApp, and Telegram convinced many to ignore warning signs.
The collapse of CBEX came just days after the Securities and Exchange Commission (SEC) of Nigeria warned the public to avoid unregistered trading platforms. The SEC, in a statement, referenced the newly signed Investment and Securities Act 2025, which makes it a criminal offence for any entity to run an online forex or crypto trading service without registration.
The SEC Director-General, Dr. Emomotimi Agama, said the new law aims to protect investors and strengthen regulatory oversight over digital financial products.
“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence,” Agama said.
He urged any business planning to operate in the online trading space to register with the commission, warning that failure to do so would attract legal consequences.
As frustration grew over the collapsed platform, angry investors across the country began expressing their anger. In Ibadan, Oyo State, hundreds of victims stormed the CBEX office in Oke Ado, breaking in and carting away furniture and office equipment in protest. Police and Amotekun security officers were deployed to restore order.
An eyewitness at the scene said the situation became tense as investors realised their life savings had likely vanished.
“The crash of the online platform was announced yesterday. That’s what prompted many of those who invested in the scheme to storm the office to express their displeasure,” the witness told our reporter.
“Some security agents have been stationed at the office to prevent a breakdown of law and order.”
In Abuja, the CBEX office in Jahi district was locked and deserted when reporters visited on Tuesday. A private security guard at the gate confirmed that no staff had reported for duty, likely out of fear of angry investors.
“The instruction we received this morning was to lock the gate and carry out checks to ensure the facility is not invaded,” the guard said.
He added that the complex also houses other businesses, and there were fears that any violent reaction could affect nearby companies.
As the investigation deepens, the EFCC has vowed to pursue justice for the thousands of Nigerians affected by the scam. Oyewale emphasized that the commission is also working on uncovering similar Ponzi schemes operating across the country.
“There are many more we are currently investigating. We will continue to expose them,” he said.
CBEX is just the latest in a series of fraudulent digital investment platforms to collapse in Nigeria in recent years. Despite several public advisories, many Nigerians continue to fall victim to online scams that promise fast and unrealistic returns.
Financial experts have urged the public to be cautious and only invest through registered, regulated institutions. They also stressed the need for stronger enforcement of the new securities law and public education to help Nigerians identify red flags in online investment opportunities.
The EFCC and SEC are calling on victims of CBEX to formally report their cases to aid investigations and potential fund recovery.
While the road to justice may be long, authorities say they are committed to ensuring that fraudsters are held accountable and that investor confidence in Nigeria’s digital finance space is restored.
