The Economic and Financial Crimes Commission (EFCC) has opened an investigation into a suspected $847m fraud involving CryptoBank Exchange (CBEX), a digital investment platform that allegedly defrauded thousands of investors across Nigeria.
The platform, reportedly managed by a group of foreign nationals in collaboration with Nigerian partners, abruptly collapsed on Monday, leaving users unable to access their funds.
Many were asked to make further deposits before withdrawals could be made.
The EFCC spokesperson, Dele Oyewale said the commission has commenced preliminary investigations in collaboration with the International Criminal Police Organisation (INTERPOL) to track down the perpetrators.
“We had our intelligence before the incident,” Oyewale said.
“We were already working on it, but now that the scheme has collapsed, the major actors and their collaborators will be brought in. We are working to ensure that Nigerians are protected from these Ponzi schemes.”
He added that arrests were underway and that efforts to trace the foreign operators were ongoing in partnership with INTERPOL.
The EFCC could not confirm the total amount lost, but reports estimate the figure at approximately N1.3trillion or $847million. The scheme promised 100 percent returns in 30 days, using cryptocurrency-based trading, and reportedly restricted withdrawals on April 9.
Investors reported that account balances had been wiped clean. Users were then prompted to deposit an additional $100 or $200, depending on their account size, to “verify” their accounts and regain access.
Between January 2024 and February 2025, the platform is said to have changed its domain name multiple times, raising concerns about its legitimacy. Despite this, it was widely promoted via social media and word of mouth.
The collapse of CBEX came shortly after the Securities and Exchange Commission (SEC) warned Nigerians against using unregistered digital trading platforms. Under the newly signed Investment and Securities Act 2025, such operations are now deemed criminal.
“This Act gives the SEC the legal backing to ensure investor protection and market confidence,” said SEC Director-General Emomotimi Agama.
“No entity is allowed to operate online foreign exchange or digital asset platforms without registration.”
The collapse has led to an outrage across Nigeria.
In Ibadan, Oyo State, furious investors broke into the CBEX office at Oke Ado, seizing furniture and equipment. Security forces, including the police and Amotekun, were deployed to restore order.
Reports said that patrol vehicles were stationed around the premises. “Some security agents have been stationed at the office to prevent a breakdown of law and order,” an eyewitness said.
In Abuja, the CBEX office in Jahi district was shut and guarded. A security guard said no staff reported for duty due to fears of possible attack.
Victims have shared harrowing accounts of their losses. One woman said she lost $10,000, while another wrote online that she had lost $1,000 saved for her wedding.
“I don’t even know how to tell my fiancé,” she said.
Another victim said her brother had invested his school fees and was now too ashamed to face their parents. Meanwhile, a businessman said he introduced three friends who lost $8,000 between them.
The EFCC said CBEX was among dozens of entities operating illegally in Nigeria’s investment space. In March, the commission released a list of 58 companies implicated in similar schemes, including Wales Kingdom Capital, Bethseida Group, and Titan Multibusiness Investment.
“These firms lured investors with promises of unrealistic returns in agriculture, real estate and forex trading,” the EFCC said. “Many operated without licences and vanished after collecting funds.”
Oyewale urged Nigerians to exercise caution and verify any investment opportunity with the Central Bank of Nigeria or the SEC.
“We are committed to protecting the public from predatory operators and creating a corruption-free economic environment,” he said.
Financial experts blame widespread greed and lack of due diligence for the surge in such schemes.
“Nigerians want to invest N100 and get N200 the next day,” said banker Kelechi Godfrey. “When returns seem too good to be true, something is wrong. This is how $800m disappeared into thin air.”
Investment analyst Segun Aremu echoed the sentiment, saying, “When someone promises you 100 percent returns, understand the risks. People must learn to match their investment goals with their risk appetite.”
* Media Report