Court denies bail to CBEX promoters in $1 billion fraud case

Court denies bail to CBEX promoters in $1 billion fraud case

The Federal High Court in Abuja on Monday denied bail to three detained promoters of Crypto Bridge Exchange (CBEX), who are accused of involvement in a fraud exceeding $1 billion.

In his ruling, Justice Emeka Nwite stated that, based on the affidavit evidence submitted by both parties, the case against the defendants appears to be strong.

Earlier, on April 24, 2025, the judge had approved the Economic and Financial Crimes Commission’s (EFCC) application to arrest and detain six CBEX operators in connection with the alleged fraud.

The order followed an ex parte motion filed by the EFCC’s counsel, Fadila Yusuf, which sought detention pending the conclusion of investigations and possible prosecution.

According to the EFCC, the defendants, through their company, ST Technologies International Limited, promoted CBEX by advertising investment opportunities and luring members of the public to invest in cryptocurrencies on the CBEX platform.

The agency alleged that the defendants promised unrealistic returns of up to 100 per cent, requiring victims to convert their digital assets into stablecoin (USDT) and deposit them into the suspects’ crypto wallets.

Initially, victims had full access to monitor their investments. However, once deposits surpassed $1bn, the CBEX platform became inaccessible, and withdrawals were blocked.

Investigations revealed that the scheme was fraudulent and that ST Technologies International Limited, although registered with the Corporate Affairs Commission, was not authorised by the Securities and Exchange Commission to offer investment services.

The EFCC further disclosed that the defendants had vacated their last known addresses in Lagos and Ogun states.

A warrant of arrest was thus necessary to trace and apprehend them.

During a hearing on June 11, counsel for the defendants, Babatunde Busari and Justice Otorudo, argued for bail, citing Section 35(1) and Section 36 of the 1999 Constitution (as amended) and sections of the Administration of Criminal Justice Act, 2015.

The defendants sought to modify the court’s earlier order allowing the EFCC to detain them by requesting bail pending the conclusion of investigations, arraignment, and trial.

However, the EFCC opposed the bail request, arguing that the defendants were involved in a fraud amounting to more than the combined budgets of several Nigerian states. The commission also highlighted that new complaints from victims were still being received.

In his ruling, Justice Nwite noted that a formal charge had been filed against the defendants and was awaiting assignment to a court. He dismissed claims that the first defendant, Abiodun, required urgent medical care, stating that the EFCC could provide the necessary treatment.

“Considering the nature of the case and the fact that a formal charge has been filed, I believe the interest of justice will be best served by transferring this application to the court where the charge is pending, to allow for simultaneous arraignment and hearing of the bail request,” the judge ruled.

The bail application was subsequently denied.