A Federal High Court in Abuja has granted the Economic and Financial Crimes Commission (EFCC) permission to arrest and detain six Crypto Bridge Exchange (CBEX) promoters over allegations of investment frauds to the tune of over $1 billion committed in the country.
The presiding judge of the court, Justice Emeka Nwite, gave the order following an ex parte application moved by Fadila Yusuf, counsel to the EFCC.
In the application by the anti-graft agency in which it sought an order of the court for a warrant of arrest of the defendants, the six suspects are Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim.
It also prayed the court for “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution”.
Yusuf told the court that the defendants were at large and a warrant of arrest was required to arrest the defendants for proper investigation and prosecution of this case.
In the affidavit in support of the motion, the EFCC stated that the preliminary investigation into the Intel revealed that the defendants “using their company ST Technologies International Limited, promoted another company Crypto Bridge Exchange (CBEX) by making adverts and lured unsuspecting members of the public to invest crypto cryptocurrencies on the CBEX investment platform”.
The commission also stated that the defendants promised an unrealistic return on investment of up to 100 percent.
The EFCC counsel further alleged: “The victims were made to convert their digital assets into a stablecoin of USDT for onward deposit into the suspects’ crypto wallet..
“The victims were initially given full access to the platform to monitor their investment.
“Following the deposits valued at over $1 billion by the victims, the CBEX investment platform became inaccessible to them, and they could no longer withdraw from the investment made.
“The victims later discovered that the said scheme is a scam.
“During the course of investigation, it was discovered that the said ST Technologies International Limited, though registered with the Corporate Affairs Commission (CAC), it was not registered with the Securities and Exchange Commission (SEC) for investment purposes.
“It was also discovered during the investigation that the defendants had moved out of their last known address in Lagos and Ogun states”, he added
The anti-graft agency maintained that obtaining a warrant of arrest was necessary in order to place the defendants on a watch list, enabling authorities to trace and apprehend the suspects to face the charges brought against them.
Having considered the grounds on which the application was based, Justice Nwite granted the request for a warrant of arrest and remand of the defendants, adding that the order is necessary to enable the commission to apprehend the defendants and conclude its investigation.
He said: “I have listened to the submission of the learned counsel for the applicant
“I have also gone through the affidavit evidence with exhibits thereto, along with the written address.
“I am of the view and I so hold that the application is meritorious.
“Consequently, the application is granted as prayed”, the judge added.
It would be recalled that early this month news reports indicated that CBEX users could no longer withdraw their funds following which on Monday this week, angry investors stormed and looted the office of Smart Treasure (ST Team), an affiliate of CBEX, in Ibadan, Oyo State, even as complaints over the CBET investment deals with the platform users spread nationwide.
Reacting to the ugly situation, the EFFC’s spokesperson, Dele Oyewale, assured the affected investors that the anti-graft agency was initiating moves to recover their funds from the CBEX operators.
