Thousands of Nigerian investors have been thrown into panic and uncertainty following the sudden shutdown of CryptoBank Exchange (CBEX), a digital investment platform now at the centre of a staggering N1.3 trillion cryptocurrency fraud.
The Economic and Financial Crimes Commission (EFCC) has opened a far-reaching investigation into the alleged scam and is working closely with the International Criminal Police Organisation (INTERPOL) to identify and arrest suspects both within and outside the country.
CBEX, which reportedly operated under the control of foreign nationals in partnership with Nigerian collaborators, abruptly ceased operations on Monday, locking out thousands of users who woke up to find their account balances wiped.
In a bid to access their funds, many were prompted to pay additional deposits ranging from $100 to $200 — a desperate move that only deepened their losses. The platform, which promised investors a 100% return within 30 days, had earlier restricted withdrawals on April 9, 2025.
EFCC spokesperson Dele Oyewale revealed that the commission had already launched an investigation before the collapse based on “credible intelligence.”
“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 on Tuesday.
He further disclosed that the EFCC is not only focused on CBEX but is also investigating other similar fraudulent schemes across the country.
“Additionally, there are similar frauds across the country that people are unaware of, and we are working to uncover them. We are on the local collaborators while we are partnering INTERPOL to trace the foreign operators,” he added.
Although the actual volume of funds lost is yet to be confirmed, preliminary estimates suggest the figure may exceed $847 million (approximately N1.3 trillion). Both local and foreign investors have reportedly been affected.
As public outrage mounts, tensions boiled over in Ibadan, Oyo State, where angry investors stormed the CBEX office located in the Oke Ado area. The office was vandalised, and furniture was carted away in protest. Security operatives from the Nigeria Police and the Amotekun Corps were deployed to restore order.
The Securities and Exchange Commission (SEC) had previously warned Nigerians about the risks of investing in unregistered digital platforms. SEC Director-General, Dr. Emomotimi Agama, emphasized the provisions of the new Investment and Securities Act, 2025.
“It is illegal to operate trading platforms without proper licensing. We urge all prospective operators to seek registration to avoid running afoul of the law,” he said.
CBEX was known for its aggressive marketing tactics, especially on social media and peer-to-peer groups, drawing in thousands of unsuspecting investors. Investigators have since uncovered that the platform changed its domain name several times between January 2024 and February 2025 — a move now seen as a deliberate attempt to avoid detection by authorities.
As the EFCC intensifies its crackdown, victims across the country are calling for justice and demanding swift action to recover their funds and hold the perpetrators accountable.
